Never before has so much money been bet by so many investors on so singular an outcome: Higher interest rates. That’s what the Wall Street Journal reported this morning, noting that investors have placed a whopping $2.1 trillion in bets on rising short-term rates in the Eurodollar futures market. That eclipses the previous record from 2014, according to data from the Commodity Futures Trading Commission that dates back to 1993. The move also mirrors other gigantic, post-Trump positioning shifts in the stock and currency markets, where the dollar has soared the most against some currencies in decades.
You can look at this in one of two ways: Either you “follow the money” and play alongside. Or you start thinking about being a contrarian, and betting against the crowd in bonds and currencies. In my All Weather Trader service, I helped my subscribers profit from the dollar surge against the yen. But I’m starting to look at some contrarian positions in various markets now. Click here if you want to get on board before I pull the trigger.
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i wouldn’t make that a long-term bet, mike. rising rates will rule the next few decades as we once again climb the interest rate mountain all the way to the top. if that doesn’t happen, we have more problems than we know.