Right now there is several smaller themes which in my scope starts to look like something which could lead to massive change in outlook primarily for fixed income and fx - A cyclical turn could be in place inside the next few months and lead interest rates much higher in response to:
It should be noted that for the foreign exchange market I see one major correction followed by a long protracted narrow range - as this is the way lows and highs in the market is created (think how S&P been in broad band since making all time highs last year)
Foreign Exchange --
There is one final leg down in the US Dollar left - market will see 1.60+. Still long MXN, and long JPY.
Fixed Income --
Long 30y US Bond calls - looking to buy Euro Dollar December, Fed is going to cut more than market perceive.
Looking at trades for when ECB cuts
Long grains, short crude (options)
Short S&P and DAX
Steen Jakobsen, Chief Investment Officer, Saxo Asset Management.