Worried about a recession? One powerful group of traders are betting we won’t sink into one!

Are you fretting that we could be poised to slump into a recession? No one will blame you as both equities and credit markets are pricing in a strong probability that Australia’s golden 29-year recession-free run is coming to an abrupt end. The S&P/ASX 200 is threatening to slip into a bear market while Australian sovereigns are rallying on safe-haven buying. What’s more worrying, the latest sell-off seems to be led by our Big Bank stocks – not resources. The banking sector is the new whipping boy of the ASX. It’s debatable whether we will succumb to a recession, although investors should be nervous that markets are pricing for one as markets are more often right than wrong. People who are willing to put their money where their mouth is usually are. But one of the world's most powerful group of traders are betting that Australia won’t slip into a recession. I am talking about traders in the $5.3 trillion a day currency market. This is the biggest market in the world and towers over equities and credit. (VIEW LINK)