The Macro Trading Floor How To Trade Tariff Day
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Jan 17, 2025 The hosts dive into the strategic intricacies of trading on 'Tariff Day,' analyzing the mixed reactions across asset classes and the importance of market sentiment. They uncover unexpected bond market dynamics and how tariffs affect bond sell-offs. Options trading is dissected with humor, revealing the challenges of timing and volatility. The contrasting monetary policies of the Bank of England and the U.S. Federal Reserve are explored, along with inconsistent market behaviors related to inflation, urging listeners to prioritize their research.
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Hedge Fund Launch
- Brent congratulates Alf on launching his hedge fund.
- Alf discusses the complexities of setting up a hedge fund today versus 20 years ago.
Market Complacency on Tariffs
- Markets are complacent about potential tariffs, especially regarding Canada.
- Brent's survey reveals surprising optimism about no tariffs on Canada.
Market Reactions to Tariffs
- Option markets show mild nervousness in FX, complacency in equities, and slight worry in bonds.
- Alf suggests a potential market rally if Trump says nothing concrete about tariffs.
