Bank of America Merrill Lynch has named its top ten trades for this autumn as investors prepare for a tapering of QE in the US and a possible jump in interest rates.
In its latest investment strategy update, a group of strategists at the global bank have listed their top trades for the anticipated higher rate environment. 1. Long Chinese banks The strategists said Chinese banks are currently the cheapest they have been versus US banks since October 2005. Ben Bowler, global head of equity derivatives, said investors may want to hedge exposure by selling downside on Hong Kong Property stocks (HSP). 2. Buy Chinese property high yield Joyce Liang, vice president at Merrill Lynch in Hong Kong, suggests corporate bonds of high quality property dev...
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