Pound Tops Buy List for Year That May Bare ‘Sleeping Volcanoes’
- Buying euro among top 2018 trades as higher yields may support
- Bunds seen at risk from QE cuts, but Portugal may rally more
Algebris’ Alberto Gallo on Brexit and the Pound
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What was considered best avoided in European currencies and bonds a year ago is just what’s topping 2018’s hottest picks.
The pound and the euro, which analysts shunned at the end of 2016 predicting doomsday scenarios, are the very thing they are recommending for next year. As for bonds, well, good luck if you own them since they reckon yields will climb as major central banks begin to end monetary stimulus.