Strategies – Page 185 – Smarter Investing

Amin Khakiani, manager of the Quantitative Hedging and Quantitative Broad Index models, is positioning for more volatility.

Positioning for more volatility

Manager Patrick Larkin of the All Cap Value Model highlights his market moves in May.

Management reported earnings in May and I finally heard a tone that makes me think they are on the right track.

I expect a rally at any time given the oversold position of stock prices.

This position is diversified with long bonds, a short China position, and gold.

Europe was driving equity markets and the Euro south, so my short positions benefited from these developments.

Central bankers have been succumbing to Keynesian counterfeiting since it became all the rage in the 1930s.

The portfolio holds companies which are strong financially and may benefit from the continued weakness in the equity markets.

The odds of additional stimulus from the Fed have increased.

If you are long at this point, it is not a good time to sell.

The 17 member states of the Eurozone could issue bonds collectively and accept joint liability for the outstanding debt.

I’d be a fool to compete with the hedge fund talent in knowing when Facebook is a buy or sell post-IPO.