For Professional Investors Only. For Information Purposes Only. Not Investment Advice.
Good Morning,
As we had hoped, GBP/EUR and the DXY continue on their upward trajectory although in these times where profits are harder to come by, I wouldn't blame you for booking some winnings at these levels, we are 5 big figures to the good on GBP/EUR, pullbacks at any point are possible. Volatility is also at heightened levels, so those of you that considered our suggestion several days ago to invest in some portfolio protection should see those positions contributing nicely to overall p/l and dulling the pain somewhat.
From here on, with equity indices on the cusp of rolling over, we cannot yet bring ourselves to come off the sidelines and invest outright. We have our yielding positions that are hedged off and don't plan to change that just yet. Staples and Pharma seem to represent long term value but there doesn't seem to be a great rush to commit cash right now. The 'major' Investment Banks are starting to price a recession into their DM and EM numbers at last although they are still far too optimistic (or biased depending on your viewpoint).
It is time that has to play out now before entry levels come to light, rather than price. Hopefully patience will pay off. Capital preservation and a high level of market neutrality in the interim is paramount.
Good Morning,
As we had hoped, GBP/EUR and the DXY continue on their upward trajectory although in these times where profits are harder to come by, I wouldn't blame you for booking some winnings at these levels, we are 5 big figures to the good on GBP/EUR, pullbacks at any point are possible. Volatility is also at heightened levels, so those of you that considered our suggestion several days ago to invest in some portfolio protection should see those positions contributing nicely to overall p/l and dulling the pain somewhat.
From here on, with equity indices on the cusp of rolling over, we cannot yet bring ourselves to come off the sidelines and invest outright. We have our yielding positions that are hedged off and don't plan to change that just yet. Staples and Pharma seem to represent long term value but there doesn't seem to be a great rush to commit cash right now. The 'major' Investment Banks are starting to price a recession into their DM and EM numbers at last although they are still far too optimistic (or biased depending on your viewpoint).
It is time that has to play out now before entry levels come to light, rather than price. Hopefully patience will pay off. Capital preservation and a high level of market neutrality in the interim is paramount.
