Hedgeye’s macro team has been bearish (and correct) on European equities throughout 2018, and the Euro versus the dollar since April. Both market calls were made well ahead of consensus.
On a recent edition of The Macro Show, a viewer asked:
Is it too late to start shorting both Europe and its major currency now that consensus seems to be catching up to our call?
Hedgeye Risk-Manager-In-Chief Keith McCullough explains that while investors have missed a portion of the move this year, there is still plenty of downside in Europe that will be expedited by secular and demographic headwinds.
“It’s a less contrarian position,” McCullough explains.
“But a less contrarian position doesn’t necessarily mean a less good position. Even though consensus has come my way a little bit, the ECB definitely has not come my way – a lot.”
Watch the full video 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.