Steen Jakobsen, Chief Economist and CIO of Saxo Bank, outlines his preferred trade for 2015
Steen Jakobsen, Chief Economist and CIO of Saxo Bank, outlines his preferred trade for 2015. After being quite negative on resources for 2014 he now says his preferred trade will be the complete opposite for 2015. His position is premised on an expectation that global growth and inflation expectations will see a low in the first half of 2015. When we see the low in terms of global growth and in terms of inflation expectations in Q1 and Q2 it becomes a huge opportunity to buy into the resource cycle. So basically the trade I want to do for 2015 is to be short any financial sector and to be long the tangible assets. Exactly the opposite of what has been a good trade this year. In this video Jakobsen explains why he is constructive on the outlook for iron ore and why he sees a bottom in growth expectations next year.