Equity Engineer - Jun 2014 | Central banks pushing the markets higher | We turned positive in the short term on May 22nd with China data beating expectations, while US data continues to point towards sustainable recovery. We maintain our preference to yield thematic from Jan 21st with Budget uncertainties driving down local cyclicals, subdued global growth outlook and Central banks maintaining low rates for longer. Similar to 1996 budget, 2014 budget does not deal with structural problems but exasperates the wealth inequality and transfers debt from government to public. The short term budget fixes do not deliver any structural move away from the old economy, while the rest of the world moves towards a new technology based economy. (VIEW LINK)
That is correct. Market does not move in straight lines and we have had a positive long term view for a few years. In the short term we see times when profit taking makes sense when return outlook is less than the risk on the back of macro, valuation or even sector switch. The red lines are the time to take profit or reduce market exposure while the green lines are when you add to your exposure.
Exactly. Any short term change in our market call will be reflected on Sunset Strip.
ok so based on that can I pick up your short term changes in positions from the language in the Sunset Strip? I.E. when you turn positive or negative intra month is that effectively when you are calling those short term position changes?
Mathan, with the timing of your calls in the attached report (pg.3) I am assuming the green lines reflect long calls and the red short calls?