As the world bought risk assets like gold and equities on the Fed news Wednesday, Hedgeye’s Keith McCullough was going the other way.

CNBC.com

McCullough, a CNBC contributor and founder of Hedgeye Risk Management, said he took the Fed decision and comments, along with the ensuing price action, and sold all his U.S. equities.

According to McCullough, he's 91-percent cash right now.

As the market added to Wednesdays gains, I asked him if he regretted the decision.

The short answer is no.

"Tops are processes, not points," he said. "My decision to start selling everything yesterday was the first move ... These are booked gains and no one ever went broke taking them."

There are many factors involved in his logic, but one is that policy stances from the Federal Reserve and Federal government likely will inhibit growth.

"My expectation is we start making lower long-term highs toward 1,363 (on the S&P 500

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[.SPX  Loading...      ()   ]) as people come to realize this is a policy to inflate , which will, in turn, slow the economic growth I was getting bullish about."

Another element of his thesis involves near-zero interest rates and bank accounts. McCullough says the extended period of low rates equates to a tax on the consumer. Lost interest income means less money to spend.

Follow Brian Shactman on Twitter: @bshactman

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