Traders Across the World Rush to Close Bets Ahead of Fed Decision

  • Investors should close short positions on bonds, stocks: GSFM
  • BNP Paribas has more than doubled cash holdings ahead of Fed
WATCH: Former Atlanta Fed chief Lockhart discusses expects the central bank to raise rates by 75 bps, but says he can’t rule out a 100 bps hike.Source: Bloomberg
Lock
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Some investors have a message for anyone looking to bet big before one of the most pivotal Federal Reserve policy meetings of this year: don’t, or risk getting burned.

“Close shorts on equities and bonds,” said Stephen Miller, a four-decade market veteran and investment consultant at GSFM, a unit of Canada’s CI Financial Corp. in Sydney. “I’d be closing long dollar positions too -- the next 24 hours are so uncertain when the market has already worked itself into such a pessimistic lather into the meeting.”