{"id":297609,"date":"2010-02-09T09:09:00","date_gmt":"2010-02-09T14:09:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/10-ways-you-can-profit-from-a-dollar-rally-2010-2"},"modified":"2010-02-09T09:09:00","modified_gmt":"2010-02-09T14:09:00","slug":"10-ways-to-profit-from-the-coming-carry-trade-unwind","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/297609","title":{"rendered":"10 Ways To Profit From The Coming Carry Trade Unwind"},"content":{"rendered":"

\"rosenberg\"<\/p>\n

The recent market swoon has coincided with a surge in the much-beleaguered greenback.<\/p>\n

With Europe heading into financial chaos, and China threatening to bring down several emerging markets, investors are fleeing into the dollar, undermining the cheap-dollar carry trade.<\/p>\n

So, how do you play a dollar surge, when by definition, most assets go down when the dollar is strengthening.<\/p>\n

David Rosenberg of Gluskin Sheff<\/a> ponders the question:<\/p>\n

Since the onset of the credit crisis in 2007, there have seen three occasions when a surge in risk aversion caused a period of U.S. dollar strength on flight-to-safety trades — July 15, 2008 to September 11 2008 (around the GSEs); September 22, 2008 to November 21, 2008 (post-Lehman financial collapse) and then from December 17, 2008 to March 5, 2009 (the final leg down in the financials). Here is what happened, on average, during these dollar-rally episodes — ultra-defensive strategies and heightened volatility.<\/em><\/p>\n

He then outlines 10 specific patterns...
<\/em><\/p>\n

How to take advantage of a surging dollar ><\/a><\/strong><\/h2>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n