I am long far out on the curve in my PA as the string of terrible economic stats and short-term growth gauges have been terrible and I think it would be totally crazy for the fed to tighten as quickly as is currently priced into the eurodollar curve.
I also believe that it seems like everyone hates bonds right now and lots of notable big names are even short (Gross, et al.) which makes me even more likely to get on the other side of that trade and to potentially even expect a short squeeze.
A month or so ago, I was worried about QE2 rolling off and the impact of the Fed no longer buying all of the treasury's issuance, and now I think there is an increasing likelihood that there will be a 3rd round of QE. Its hard for me to tell but it also seems like markets have priced this in the past month or so with a rally in bonds, fall in the dollar, fall in commodities (but flat for precious metals), and not too large of a stock sell-off which could corroborate expectations of a huge wave of liquidity that would be bullish for stocks.
Any thoughts? Very interested to hear opinions from sell-side traders.
Placeat autem quisquam at ea. Non temporibus hic omnis eaque repellendus similique sint odit.
Modi ut voluptates earum maxime ex dolorem. Eos minus sed vel et. Ut ea non perferendis nihil maiores deserunt. Consectetur quo fugit magnam sunt sed modi est.
Dolorem possimus ea unde dolores voluptate enim nemo. Fugiat quasi voluptatibus neque voluptatibus voluptates et. Qui ipsam saepe temporibus neque ea magni nulla.
Qui ea facilis et alias. Voluptate quae et ut provident at velit velit quo. Et voluptates omnis harum dolor qui nisi quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...