Tesla Puts, Sell Europe, Hold Cash: One Strategist's Three Moves

(Bloomberg) -- CLSA’s Matthew Sigel says it’s time to get more defensive.

The publisher of the “Hello Investors" newsletter told clients that he made three portfolio moves this month. Here are those shifts, according to a copy of the newsletter that was obtained by Bloomberg:

  • Sold all European equity holdings on concern about rising support for populist politicians
  • Added to cash using the Vanguard New York Municipal Money Market Fund (VYFXX) as a proxy: “Cash now offers positive real yields in the U.S. for the first time in years, which, should the nascent trend continue, correspond with significant equity multiple contraction"
  • Bought more Tesla puts, including February 2019 options with a strike price of $240, which give exposure to two more earnings announcements and “represent a better hedge on a corporate credit cycle than they have in some time"

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