Goldman Reveals Its Top Trade Recommendations For 2018
Top Trade #1: Position for more Fed hikes and a rebuild of term premium by shorting 10-year US Treasuries.
Top Trade #2: Go long EUR/JPY for continued rotation around a flat Dollar.
Top Trade #3: Go long the EM growth cycle via the MSCI EM stock market index.
Top Trade #4: Go long inflation risk premium in the Euro area via EUR 5-year 5-year forward inflation.
Top Trade #5: Position for ‘early vs. late’ cycle in EM vs the US by going long the EMBI Global Index against short the US High Yield iBoxx Index.
Top Trade #6: Own diversifed Asian growth, and the hedge interest rate risk via FX relative value (Long INR, IDR, KRW vs. short SGD and JPY).
Top Trade #7: Go long the global growth and non-oil commodity beta through long BRL, CLP, PEN vs. short USD.