ECB euro europe eurostoxx germany italy ray dalio

Trader: Here’s Why I Would Fade Ray Dalio’s Massive Short

"We will probably never know, but I think it’s an interesting exercise to speculate on the reasons for the massive bet."

"We will probably never know, but I think it’s an interesting exercise to speculate on the reasons for the massive bet."
This content has been archived. Log in or Subscribe for full access to thousands of archived articles.

5 comments on “Trader: Here’s Why I Would Fade Ray Dalio’s Massive Short

  1. The obvious reason to short European equities is the same as the US – the changeover from fiscal stimulus from monetary overdrave in the US is going to have financial consequences, most of which the equity markets are in complete denial will happen right now even after a 9 day 10% correction move that was totally propped up by excessive corporate buy-back moronic CFO actions.

    The next step for Europe is not likely to be a BOJ move toward continued kamikaze asset buying. Watch for European countries to push harder on the fiscal stimulus and ditch negative interest rates. Once this move is in place as 2018 progresses, that giant sucking sound in the financial markets is going to be not just the credit markets moving toward higher rates, but the implosion of equity markets worldwide.

  2. steven becker

    agreed.
    and what bond rate do you expect to implode at?

  3. Since when is an 8% short position in a sector a “massive bet”, especially in a fund known to hedge risk extensively and run their decisions from an automated 70+ factor model. These positions themselves could very well be the hedge for all we know, or somehow the most efficient way to execute on 3-5+ of their signals combined together. Without a fuller look at their book, including which fund this was for (alpha, all weather, …) inferring anything is a fools errand.

  4. What are they doing on the bond side of the portfolio..

Speak On It

Skip to toolbar