Monday, April 10, 2017

Intermarket Dynamics That Influence Investment Choices


Based in Suffield, CT, Dan Sapienza is a University of Connecticut (Uconn) graduate who has successfully pursued Wall Street day trading strategies since the late 1990s. Dan Sapienza has an economics degree from Uconn and employs traditional research-based methodologies in picking stocks to trade. An avid CNBC watcher, he pays particular attention to companies and markets worth investing in. 

One aspect of this equation involves identifying intermarket dynamics before the general investing public catches up with them. Examples of such complex asset-driven scenarios include a situation in mid-2014 where the price of crude oil plummeted, stocks took a major beating, and the dollar strengthened significantly. Given that these trends are interrelated, investors would have had a number of ways of achieving similar returns. These include shorting stocks and crude oil, and going long on U.S. currency. 

In early 2017, a primary trend involves interest rate increases, with a number of interrelated financial market asset classes such as insurance and bank stocks likely to benefit. At the same time, this trend is likely to boost the dollar and work against the value of gold. Commodities are expected to trend on a downward or neutral slope. These macro-level trends thus influence the types of investments that make the most sense.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.