Seeking Alpha

McCullough: Our GDP Forecasts Are The Lowest On Wall Street

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by: Hedgeye
Summary

Our GDP forecasts were the highest on Wall Street for six straight quarters.

Hedgeye’s predictive tracking algorithm for quarter-over-quarter U.S. GDP for 1Q 2018 is now the lowest on the Street.

“Does the U.S. economy, in rate of change space in the next one to two quarters, start to lose its momentum and slow?” says Hedgeye CEO Keith McCullough.

Our GDP forecasts were the highest on Wall Street for six straight quarters—we were contrarian and (as the data showed) largely correct.

Hedgeye’s predictive tracking algorithm for quarter-over-quarter U.S. GDP for 1Q 2018 is now the lowest on the Street.

We are at 1.56%.

But Hedgeye CEO Keith McCullough says it’s not a reason to panic. “I’m not calling for a crash,” McCullough emphasizes in the above clip.

“Does the U.S. economy, in rate of change space in the next one to two quarters, start to lose its momentum and slow?”

McCullough points to the recent dip in the consumer confidence report as one of several reasons why the top may be in for U.S. GDP.

“At some point we’re going to look back at this level and say, ‘Wow, that was the top,’” he says.

Watch the clip above for more.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.