Wednesday, May 28, 2014

The Two Mega-Pain Trades: JPM Explains Why The "Big Money" Is Losing Big Money In 2014 | Jim Rogers: Giants ditching dollar over US foreign policies

According to JPM, a pair of wrong-way bets made by clients at the start of the year is partly to blame for Wall Street’s trading slowdown. Namely: the two mega-pain trades so far in 2014: being long USDJPY and short Treasurys which everyone had put on with mega-conviction at the beginning of the year, have so far in 2014 generated mega-losses for all those involved. Bloomberg quotes Pinto who said succinctly summarized that "Neither of those trades paid." He added: "Essentially you start the year with the wrong momentum, where you lose money at the very beginning, and you ended up with probably a lower risk appetite than you would have otherwise." And, as a result of actually, gasp, losing money, "Clients appear to be hesitating in placing the larger hedges that typically happen earlier in the year."

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1 comment:

  1. Where are all the Americans going to move to, Jim Rogers' and family? Korea? Japan? China? Russia? We can leave the destroyers of the USA in the land-locked super power failure til they resurrect the Constitutional Republic! Right?