There is Only One Trade On Now

December 1st, 2009 by Mebane Faber

Comments

It is either

Short the Dollar, Long Risk (Equities, Real Estate, Commodities, Risky Bonds), Short US Govt Bonds

Long the Dollar, Short Risk (Equities, Real Estate, Commodities, Risky Bonds), Long US Govt Bonds

Take your pick, each day has been either one or the other….

Jez Liberty

mmmh... sometimes the Yen mixes things up a bit in this obvious "dichotomical" (comical?) financial markets world...

Overall its been Long Risk since March though...

gerd amft

it's been that way for over a year now. nothing has changed.

Gregory Pastik

Exactly there is nothing new about this. A novice investor could have said this over one year ago. Seems like a "very late to the party" comment to me.

WorldBeta

gerd/Gregory: that's the point of my comment.

WorldBeta

and to be clear, the GTAA system was risk neutral till the Spring, then has been long since so I'm quite aware of this (and the portfolio is hitting new highs currently).

i'm just surprised that it has continued for so long.

Jared

Meb, What are your thoughts on the new leveraged ETNs BXUB and BXUC?
Grazie!

Eddie

It seems these new ETNs will allow one to have more than 100% exposure:
ETN+ Long B S&P 500 (NYSEArca: BXUB), which will offer 3x initial leverage
ETN+ Long C S&P 500 (NYSEArca: BXUC), which will offer 2x initial leverage
I plan to allocate the additional funds to bonds.
What do you think, Meb?

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The opinions expressed on this site are those solely of Mebane Faber and do not necessarily represent those of Cambria Investment Management, Inc. (“CIMI”). This website is made available for educational and entertainment purposes only. Mr. Faber is an Investment Adviser Representative of CIMI, an investment adviser registered with the states of California and Utah. This website is for informational purposes only and does not constitute a complete description of the investment services or performance of CIMI. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. A copy of CIMI’s Part II of Form ADV and privacy policy is available upon request. This website is in no way a solicitation or an offer to sell securities or investment advisory services. Mr. Faber and CIMI disclaim responsibility for updating information. In addition, Mr. Faber and CIMI disclaim responsibility for third-party content, including information accessed through hyperlinks. Faber receives affiliate commissions through Amazon and AlphaClone.

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