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Fasdal: How to trade the year end

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November 06, 2015 2015 trading, banque de brasil, bond, bond buying, bond investment, bond investors, bond market, bond markets, bond yield, bond yields, bonds, bonds and equties, bonds market, bonds update, bonds v equities, brasil, brazil, brazil elections, brazil real, brazilian, brazilian bonds, brazilian real, china, ecb, ecb draghi, ecb meeting, ecb policy, ecb qe, economy, emerging currencies, emerging economies, emerging market, emerging market bond market, emerging market bonds, emerging market crisis, emerging market currencies, emerging market economies, emerging markets, emerging markets bond markets, emergingmarkets, equities, equities trading, equity, equity index, equity market, equity markets, equity portfolio, equity portfolios, equity strategy, equity trading, euro, europe, european, european central bank, european economy, european union, eurozone, finance, fixed income, fixed income bonds, fixed income portfolio, japan, oi telecommunications, petrobras, qe, qe2, quantitative easing
It was a brave call to make at the time, but it looks like emerging markets have been the place to invest over the last six to eight weeks. Saxo’s Simon Fasdal explains why he and his team were positive on EM assets and in particular Brazil. Bonds like Petrobras, Oi and Banque de Brasil have all witnessed huge rallies as well as Brazilian government bonds.

So is it too late to invest in EM now? Not according to Fasdal who still still believes we could see a rally into year end with fresh money being pumped in come January.

But it's not all about emerging markets, he says. He expects a surprise from the European Central Bank over its stimulus programme. He's not only expecting further QE from the ECB but also China and Japan. "I believe the winner here is QE," he says which will have a positive impact on European assets in particular. "There is a pretty good chance we will see an ECB ignited end of year rally," predicts Simon.