Portfolio Watch: Chasing ships and fading narratives
Hello everybody, and welcome back to our weekly Portfolio Watch!
We’re kicking off the year with profits and it’s safe to say that the opening days of 2024 have been nothing short of eventful.
The sudden and dramatic swings in the market can be quite the spectacle. In 2023, we placed a substantial bet on the “great disinflation trade” by heavily investing in EUR sovereigns and Gilts.
The shorts took a beating, and the bull celebrations were hard to overlook.
Too much action too soon? We have sold in the money
Chart 1: Forward curves
Geopolitics is at the front seat of financial markets these days and the data prints we are given are anything but conclusive. Read how we start off the year below!