This Is The Most Popular Trade In The World

most popular trade

A long position in the US dollar is the most popular trade in the whole world at the moment. In recent months this trade was also one of the best things you could do as an investor. Has the moment arrived to let go of the dollar?

According to Davis Rosenberg of Gluskin Sheff, it is possibly time to consider giving the popular long position in the dollar some breathing room. At least, that is what Rosenberg said in his most recent note to customers.

There are plenty of reasons why the dollar could remain the world’s favorite currency in the future, in his opinion. At a certain time, however, all good news is priced into an asset and when it comes to the dollar, that time might be now.

most popular trade 2

A Remarkable Trade

Rosenberg states that the US Federal Reserve’s increasingly nervous stance on the stronger dollar and how it is holding back the US economy will probably not result in a change in policy, but it is not the only thing he is noticing.

The dollar has also simply grown too strong too fast, in his opinion. Rosenberg wrote that the market is positioned as if the dollar can only go up; the net long position is practically at record levels. What will happen when  investors want to take profits?

Rosenberg believes that not all investors should let go of the idea that the dollar will keep gaining strength. Nevertheless he wanted to underline that a return to the mean is one of the most important concepts in investing.

Print Friendly, PDF & Email

Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *