Oct 16, 2008 20:07
15 yrs ago
3 viewers *
English term

long/short

English Bus/Financial Finance (general)
Tactical biases summary:
• Long volatility on US government bonds and Gold
• ***Long*** USD vs. G10 & ***Short*** EUR vs. Rest of the World
• Long European nominal & real yields vs. US nominal & real yields
• Overweight US and Japan equities vs. European and Emerging markets
• Overweight defensive sectors such as Healthcare, Utilities and Consumer Staples
• Favor short term HF strategies and high liquidity terms


Not so sure about what they mean here by "long" and "short". Could someone clarify this matter for me?

Thanks in advance for yoiur kind help

Discussion

Gary D Oct 17, 2008:
long term.............. short term

Responses

12 mins
Selected

long positions vs. short positions

In very simplified terms, the holder of a "long" position owns the underlying asset, whereas a "short" position involves the obligation to deliver (usually at some point in the future), or requires borrowing.

In the case at hand, the investor looks to buy US dollars against G10 currencies, and sell euros against pretty much anything else.
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4 KudoZ points awarded for this answer. Comment: "Got it! Thanks Ralf"
32 mins

Possibly futures commodities - COT index


"Speculative COT positions remain extremely long USD while short EUR and GBP (in absolute and relative terms). "

The COT index is the percentile of the difference between net speculative positioning and net commercial positioning measured over a specific number of weeks (52 or 13).


See chart in URL reference for clarification as to how the (Commitments of Traders) numbers look when the USD is long and the EUR is short.
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