The Taper Is Here and Your Trade Is Clear

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Jan. 9 (Bloomberg) –- On today’s “Insight & Action,” Adam Johnson looks at the sectors that are doing well since tapering began on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)


Time for insight and action.

This is what we have learned in the first two trading days of the year.

Look what has done well.

All the stuff benefiting from government largess is not doing so well.

Oil down five point nine percent.

Emerging markets down five point two percent.

Telecom and the euro both down.

-- oil down by 5.2%. telecom, that was just a dividend play.

You do not need the dividends but the euro obviously was at an advantage because we were depressing our dollar so much more.

The dollar is up because we are tapering.

We are not the basing as much as we have been.

This just reinforces the notion, janet yellen, stronger growth this year as opposed to mario draghi strongly emphasized accommodation.

They both use the words strong but very different meanings.

Strong growth versus strong accommodation.

Therein lies the difference.

You the cut the doctor because -- the dollar because it all boils down.

This is the move we were talking about so far here, about 1.5%. the first two trading days of the year and you look at what has happened and we have bounced.

That certainly makes the case and opens some possibility because a move up in the dollar.

Tapering is actually good for the dollar.

Moving on.

Coming up, the man behind the second most-watched ted talk

This text has been automatically generated. It may not be 100% accurate.


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