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Recessionary signals are reverberating throughout commodities, from butter (-4.55% Friday) and orange juice (-10.64%) to oil (-4.2% last week) and palladium (down -13.3%).

“It’s a good thing we’re not long palladium. It’s another good thing we got people out of Energy (XLE),” Keith McCullough says in this clip from The Macro Show. “People (at last week’s Hedgeye conference) in Chicago were like, ‘That was surgical, man. That was really well done.’”

Followers of mainstream media who react to headlines and hype, rather than an established process, missed out on these massive shifts.

“Old Wall started to figure out orange juice was going up three months after it went up. Way too late,” McCullough concludes. “Now it’s going down, because we’ve entered the recession.”

Watch the full clip above….(read more)

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McCullough: ‘We’ve Entered the Recession’ (P.S. Look At Commodities)

In a recent interview, prominent macro analyst Keith McCullough declared that the United States has officially entered a recession. This bold statement has caught the attention of investors and economists alike, prompting renewed discussion about the state of the economy and potential strategies for navigating the current financial landscape.

McCullough, the founder and CEO of Hedgeye Risk Management, is known for his contrarian and data-driven approach to financial analysis. With a reputation for accurately predicting market trends and identifying key inflection points, his assessment of the current economic climate is not to be taken lightly.

According to McCullough, several key indicators point to a recessionary environment in the United States. High on his list of concerns are declining real-time data pertaining to consumer spending, labor market trends, and industrial production. His analysis of these and other leading economic indicators has led him to the conclusion that the US economy is now in a recession.

But while the broader market may be experiencing headwinds, McCullough sees potential opportunities in specific sectors. One area that he has highlighted as particularly noteworthy is commodities.

Commodities, which include assets such as oil, gold, and agricultural products, have historically performed well during periods of economic uncertainty. As global demand for raw materials remains relatively stable, commodity prices often benefit from a flight to safety and a hedge against inflation.

McCullough’s emphasis on commodities as an investment opportunity is a reflection of his belief that investors should seek out assets with tangible value and a proven track record of hedging against economic downturns. He advocates for a diversified portfolio that includes exposure to hard assets, which can provide a buffer against the volatility of traditional financial markets.

In light of McCullough’s assessment of the US economy and his endorsement of commodities as a potential investment vehicle, investors would be wise to carefully consider their current asset allocations and consider adjusting their portfolios to include exposure to the commodity market.

As always, it’s important for individual investors to conduct thorough research and consult with financial professionals before making any significant changes to their investment strategies. However, the insights provided by Keith McCullough serve as a valuable starting point for informed decision-making in these uncertain times.

In conclusion, Keith McCullough’s assertion that the United States has entered a recession has sparked important conversations about the state of the economy and potential investment strategies. His emphasis on commodities as a promising asset class in this environment is worthy of consideration by investors seeking to build resilient and diversified portfolios.