Hedgeye's McCullough Calls Falling Yield Curve "Biggest Problem" Since 2022, Warns Against Financials

Hedgeye CEO Keith McCullough said the falling yield curve is the biggest macro problem since 2022, warning investors to stay away from financials.
"It is probably the biggest problem we've seen since the beginning of 2022," McCullough said on The Macro Show, referencing the year Hedgeye called the market crash following 2021's Quad 2 top. He said the current sequence mirrors that period, moving from Quad 2 to Quad 4, with the yield curve now diving toward 19 basis points.
McCullough noted the curve draws attention only once it turns negative, by which point the damage is typically already done, and that few flag the risk while stocks continue pushing higher. "Do not buy the financials on that," he said.