Chris Gaffney: Main Macro Risk Is Global Growth Slowdown; McCullough: Sell The Rallies

Chris Gaffney, president of World Markets at TIAA Bank joins Remy Blaire at the NASDAQ MarketSite to weigh in on global growth expectations heading into year-end. Gaffney offers his take on the trajectory for the Federal Reserve and considers the outlook for commodities and the currency markets.

“Macro Tourists” are clinging to the investing fairytale that a “trade war” resolution will fix everything in the U.S. stock market.

Don’t. Do. That.

As Hedgeye CEO Keith McCullough explains in the clip above, don’t invest your portfolio on these half-baked headlines or tweets from President Trump. At the end of the day, they are merely a blip on the trading radar.

“Everybody’s looking for the same thing, and it’s not the thing that matters in our model,” McCullough states in the clip above. “It might work for a day trade. But we’ve been very consistent on every Trump tweet…sell the rallies.”

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The long-term twist while the crowd is staring at the short-term headlines is this: the moves in the market could play right into Trump’s hands without him doing much of anything.

“Can you imagine that Trump is setting you and the whole world up?” McCullough continues.

“He can say, ‘Hey look, the stock market’s going down and I can’t stop it. The Democrats, [Jerome] Powell, the Chinese – I tried.’ Why would he not kitchen sink it now, and come back in 2020 and say, ‘Look, if you want everything I created for you to come back…don’t elect the Democrats, get Powell out of here, and I’ll decide what to do with the Chinese on my own terms.’”

Watch the full clip above for deeper insight.

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