Introducing the newest brand of full-blown autism™, I present to you the California / Europe ultimate bear portfolio! Based on a special blend of my extra chromosomes and a spicy mix of hate for California, this portfolio will blow average market returns out of the water based on the following assumptions (Cetaris Paribus):
- The world will enter a large economic recession within the next 12 months.
- Many Currency values will fall relative to others, however the Euro will be hit among the hardest.
- As unprofitable companies no longer have access to liquid credit or financing they will have to restructure their debt in some form.
- The highest density of unprofitable companies will continue to exist in California, and local California municipalities will not plan accordingly for a recession.
- European markets in general will fall quicker and with more momentum than US equity markets.
Feedback and thoughts requested please.
|Symbol & Exchange||Description||Instrument||Position||Strategy Allocation (%)|
|CHF/EUR FOREX ICE||Swiss Frank vs Euro Currency Pair||Currency Pair||Long||10|
|6EH2021 CME||Euro Futures March 2021||Futures Contract||Short||10|
|FXE NYSEARCA||Invesco Currency Shares Euro Currency ETF||ETF 15JAN 2021 $98 Strike Put Contract||Long||10|
|GBP/EUR FOREX ICE||Pound Sterling vs Euro Currency Pair||Currency Pair||Long||15|
|USD/EUR FOREX ICE||U.S. Dollar vs Euro Currency Pair||Currency Pair||Long||5|
|CMF NYSEARCA||California Municipal Bond ETF||ETF||Short||5|
|PZA NYSEARCA||Invesco Nation AMT-Free Muni Bond ETF||ETF||Short||5|
|AUD/USD FOREX OANDA||Australian Dollar vs U.S. Dollar Currency Pair||Currency Pair||Long||5|
|EZU BATS||iShares MSCI Eurozone ETF||ETF 15MAY2020 $37 Strike Put Contract||Long||15|
|GDX NYSEARCA||VanEck Vectors Gold Miners ETF||ETF 15JAN2021 $35 Strike Call Contract||Long||20|
Edit: Typo, wrote put instead of call for GDX. Shame tables don’t copy over from word / excel and you have to retype yourself.
Disclaimer: Consult your financial professional before making any investment decision.