In fact, McCullough argues that latest data out of Beijing confirms his thesis.
Foreign direct investment in China fell 8.7 percent in July, the government said on Thursday.
"The slowdown in world economic growth, increasing uncertainties and a lack of proper solution to the European debt crisis" were external factors contributing to the decline, said ministry spokesman Shen Danyang.
McCullough expects to hear similar commentary from elsewhere in the world, and not just in the near-term, but for a whole to come.
“We see poor growth as a protracted and structural thing. Therefore I see no reason for a rotation (to drive investors out of bonds and into stocks.)”
And without a meaningful rotation, McCullough sees no reason for the rally to endure.
Posted by CNBC's Lee Brodie
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Trader disclosure: On August 16, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Brian Kelly is long TGT; Brian Kelly is long XHB; Brian Kelly is long GLD; Brian Kelly is short DLTR; Brian Kelly is short DG; Brian Kelly is short FDO; Mike Murphy is long AAPL; Mike Murphy is long SBUX; Mike Murphy is long TWI
For Deborah Weinswig
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of TGT
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of DG
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s) WMT
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s) M
For Julian Mitchell
I, Julian Mitchell, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.
For Mark Hawtin
GAM is long AAPL
GAM is long FB
GAM is long MSFT
GAM is long GOOG
GAM is long STX
For Porter Bibb
MediaTech is long AAPL
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