The U.S. stock market is in uncharted territory. Volatility (VIX) hovered near all-time lows at the same time the U.S. economy tied the all-time record for consecutive quarters of growth. In other words, investors are in a tricky position.
Investors need to remain extra vigilant during this unexplored time of accelerating growth versus realized volatility, says Hedgeye CEO Keith McCullough.
"Everything was 'buy the damn dip,' everything was obvious, and growth was accelerating for seven consecutive quarters," McCullough says in the clip above.
"This is a really dangerous place to be. Volatility never went that low before. You are in the land of complacency."
Volatility is back now. Wall Street looks complacent. And the market is on increasingly shaky ground.
Mr. Keith R. McCullough is the Founder and CEO of Hedgeye Risk Management LLC. He covers the strategy sector at the firm. Prior to founding the firm, Mr. McCullough was a Partner, Portfolio Manager, and Managing Director at the Carlyle-Bluewave Partners hedge fund. Prior to that, he was a Portfolio Manager at Magnetar Capital; a Founder, Managing Partner and Co-Portfolio Manager at Falconhenge Partners, LLC; and Partner, Executive Vice President and Portfolio Manager at Dawson Herman Capital Management. Mr. McCullough got his start as an Institutional Equity Sales Analyst at Credit Suisse First Boston. He is currently co-chair of the NYC Bipartisan Policy Center; he writes regularly for Fortune and Forbes and is the author of the popular book, Diary of a Hedge Fund Manager.