Bank of America strategists in a weekly commentary, they highlight a new pain trade as
- lower bond yields
- lower Nasdaq
- stronger yen
Saying:
- everyone is minting the same long T-bills, long Nasdaq barbell
- and thus the biggest Q3 pain trade is lower yields, lower Nasdaq, plus higher yen
BoA note that:
- "no one has that on"
More in the FX space, BoA say the biggest carry trade this year has been long MXN, short JPY. But its been ourpaced by the 30 odd % gain for the NASDAQ ... up until today anyway:
On tech stocks, they say "sell the last hike" by the Fed move will hit tech the hardest.
