- Hybrid strategies with a better than 4% running yield, beta of no higher than 0.5, and with a mix of dividend-paying stocks and oil/gas paper. We continue to favour the income-hard asset barbell.
- Relative value trades with longs in high-quality, non-cyclical, low P/E stocks and shorts concentrated in low-quality, expensive, economically sensitive stocks.
- Hedge funds should benefit from the heightened volatility as QE2 draws to a close, just as was the case last year with the end of QE1 right around this time.
- Secular bulls on energy and precious metals, as well as agriculture. Starting to warm more towards natural gas, mindful of the lingering excess supply.
- Positive on the Canadian dollar — it is in a multi-year bull market. • Focus on the corporate bond market given the prospect for sustained low
- default rates; high-yield still offers best value for risk.
- Japanese equities remain one of the most compelling value plays in the world, notwithstanding the ongoing macro risks from the nuclear disaster
Welcome to the Vitus Capital Blog!
Notes to myself, possibly of interest to others.
-- Bill Northlich