![]() As a result, global macro has a strong subjective-directional component. The classic global macro strategy utilizes macroeconomic information to anticipate market direction through subjective views. Burstein, an ex-Goldman Sachs macro proprietary trader who now heads a hedge funds-dedicated equity sales group at Daiwa Europe, proposes a new global macro strategy that is nondirectional and more objective. More importantly, it introduces an innovative strategy to this popular hedge fund investment style-global macroeconomic arbitrage.ĭr. Macro Trading and Investment Strategies is the first thorough examination of one of the most proficient and enigmatic trading strategies in use today-global-macro. In Macro Trading and Investment Strategies, Burstein presents, with examples, the framework for traditional global macro strategies, then shows how to use macroeconomic mispricings in global financial markets to design innovative global macroeconomic arbitrage strategies for trading and investing. Burstein shows how this trading strategy works in stock market sector spreads (food retailers/general retailers, banks/utilities), stock index spreads (Italy/Spain, Sweden/Finland), and with the European Monetary Union (EMU) ahead of its 1999 single-currency final stage. Macro arbitrage is introduced as a new, lower-risk, long/short macro strategy that is based on detecting objective macroeconomic mispricings in global markets. He then proposes macro arbitrage as an original alternative to trading subjective macroeconomic views at times when markets are either trending or are extremely volatile, lacking direction, and in crisis, such as during the Asian, Russian, and Latin American economic and financial collapses of the late 1990s. In Macro Trading and Investment Strategies: Macroeconomic Arbitrage in Global Markets, Gabriel Burstein defines and rigorously analyzes this investment style. By placing directional bets on liquid assets, it is particularly suited for trending markets. Pioneered by hedge fund managers such as George Soros and Julian Robertson, this strategy has led to enormous profits. ![]() ![]() Some of the most successful and well-known hedge funds have long profited from a trading strategy that applies macroeconomic views to global markets: global macro. Macro Trading and Investment Strategies: Macroeconomic Arbitrage in Global Markets ![]()
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