SocGen Provides a Road Map of How to Invest as the Fed Makes its Easing Exit

“Here are a couple of trading ideas from Societe Generale analysts who believe that the USA could be on the verge of a sustained recovery.  If the positive economic environment persists the Fed could be forced to act.  This could bring lots of moving parts together as Fed tightening and a better economic environment impact asset prices.  SocGen says the way to play it is to short hold, short silver, long USD, curve steepeners and a long short global play on consumer cyclicals and non-cyclicals:

We expect the Fed to begin tapering asset purchases in Q3 and to fully stop asset purchases by the turn of the year. The rise in bond yields should be positive for the US dollar, while precious metals are the most exposed to any rise in real interest rates….”

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