3 Trades To Make After Draghi's Comments
CNBC’s "Fast Money" traders on Friday shared three moves to make after European Central Bank President Mario Draghi said the ECB would not be boosting rates any further.
Guy Adami recommended the iShares Barclays 20+ Yr Treas.Bond (ETF) (NASDAQ: TLT). Considering what is going on in the world, U.S.’ 10-year bond at 1.8 percent looks “pretty attractive against a landscape of negative interest rates globally,” the analyst commented.
Up next was Tim Seymour, who said he would be a seller of the iShares Russell 2000 Index (ETF) (NYSE: IWM) into a range. “Going into the Fed, this is where I can line up with these guys,” he said. “The markets have had a straight line higher off of extreme oversold conditions, and the small cap stocks outperformed the S&P 500 by 600 bps in the last three weeks. I could fade that. I can hedge my portfolio with that. It’s a tactical call,” he stated. However, he noted, stocks are going sideways, and valuations are no especially bad.
Finally, Brian Kelly recommended buying the U.S. Dollar. Going into the Fed, “this opens the door for the Fed to be at least more hawkish,” he said.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
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