Quote of the Day

In his morning macro commentary Hedgeye's Keith McCullough agreed with our latest assessment:

"...on the dollar, it is being devalued! 

It's not that complicated, in dollars things are inflating big time.

...when real growth slows, and when real yields fall, gold goes straight up. There's no political narrative for that by the way that's good, because then you have to acknowledge that the real growth part is that stagflation is the predominate result of all the money printing and the giving away of monies embedded therein."

Here, coincidentally, is from our morning note:

"The treasury will issue debt without restraint and the Fed will purchase it likewise, indefinitely.

Commodities -- gold especially -- are the most obvious trade under these circumstances. US equities stand to ultimately benefit as well, however -- and this will produce great anxiety for the Fed along the way (due to extreme global carry) -- with bouts of extreme volatility, given the unavoidable economic stagnation such a scenario creates, and the potential for huge political disruption (regulation, taxation, etc.) as growing income/wealth inequality continues unabated (exacerbated, in fact) going forward."