Ambrose Evans Pritchard reports on 8 top ‘ten’ trades for 2010 from Goldman Sachs. Perhaps surprisingly it contains –
Short Spain/ Long Ireland.. This is interesting. Goldman Sachs says both countries are boom-bust property disasters but Ireland looks better placed to outgrow its debt and has shown greater resolve in taking the axe to spending. Spains behind-the-scenes bank cleansing is not credible. I agree totally. Goldman Sachs plays this through 5-year credit default stops (CDS). Dont ask me how to do it. This is hedge fund stuff.
They must have missed yesterday’s Neville Chamberlain moment, or perhaps they’re up-to-date and have factored in today’s apparent U-turn?