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How to trade equities in a post-QE world

Monday, July 08, 2013 - 03:12

July 9 - Jacob Schmidt, CEO of Schmidt Research Partners, explains equity and hedging trading strategies investors can use as we head into a post-QE environment.

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Investor is his speech but Bernanke saying he may -- take away the punch -- markets have been pummeled. Joining me now is ticket Smit spent -- recess taught as Jacobs thank you so much for joining us. Of all you know invest is -- in this coming post she. I think you want to be -- equities here you don't want to be long bombs he -- -- because bond gets tight yet to rise that is puts it's just a question way. Intel is an equity you want to be the equity market they want to be the equity markets that have the best intentions I think you'll have to be that in the in the in the good equity markets you'll be in the US stocks that to be in some European stocks. -- to -- selected -- at the major markets but we can submit it -- we think that with the results list that stability. Let's talk about strategies as well should they be looking at CDS for example. That all of this you want to look if you good news and in advance -- could look at the all the exit to assist. That you want to look at different. Kept switching to connect if you look at and it bombs to some extent but yet to be very careful how you put it that what to peak at. You might want to look it's gotten a year at the instruments you want to look at CDS that's rather wonderful side to want to. And look at. At at being songs he'd be as bad people will try to -- it -- credit -- so the Whiting expects in particular that incorrectly in Europe we see today for example with Portugal again. At some kind of troubles re imagining. And annual to look at the other as it costs such as commodities. Foreign exchange and perhaps even cope with you about that's how. Tools indeed derivatives. -- to the industry can Christina Estes use -- types of derivatives to protect themselves. I think but that takes it extremely important yet -- as I said that India. We've got Greinke could is -- good at what it it it it's the right -- just being yet but it won't be Catholic. It did when Daschle and -- to protect yourself. Win derivatives that keep humorous convexity that means if this is set off you really haven't you have a great. Pay off. So what you have that on the one hand you want might want to look at that at. At the aches and options on the -- Without of the money. Called option that's on. That we could get about 16% in the vick's side -- these relatively note in the the next crises. And you might have very good details that they knew what to look at the ball and spreads in particular. Those bond markets who have extremely no use for example chip and very concerned about the millions that and I think that's fantastic instruments out there. -- -- apple to benefit from an increase in the yields for example JGBs they eat yes every -- that you fantastic. -- that will be an instrument that -- and at the trade that we would -- he at this point in time and last but -- -- you might want to look at that at this commodities. Is the heads and we've seen in the last few days. Off -- instead -- -- gold to -- -- -- that we -- back to 1250. And my. Hunches -- that the outside yet he's being get in the thousands side CI they want to do it. Out why -- we might want to do it via options on gold. Oh.

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How to trade equities in a post-QE world

Monday, July 08, 2013 - 03:12