May 30 - Carrington Investment Services Managing Director, Chris Whalen says some investors already are unloading investments sensitive to a shift in the Fed’s monetary policy. He lists three that are especially vulnerable.
Chris Whalen has for us three spots you don't wanna -- and when QE isn't backed over and done it so Chris give me an idea of where you should be avoiding what we see that. Plan and sites like. Security see it but the treasury markets back up half a point. This month study in three weeks so obviously fixed income anything related to interest rates to be careful of second area is corporate. Bonds and also preferred shares are an awful lot of preferred shares including the banking sector you know am -- doing very passionate about the preferred. -- rallied twenty points over the last two years. I think that trade is pretty much -- so I think investors. Who are willing to hold those securities for long term we're gonna see an awful lot of ground lost. As some market starts to believe the Q we use this coming into it and we already see this happening now. And in another area that I think you know most people don't think about is currencies. But that you -- -- an awful lot of volatility in the currency markets up and down. -- offense stores moderating their policy simply because people are gonna know. What to do next used to go to the Bank of Japan aggressively printing money Christopher Edward are really. -- ironically by its US dollar weakened. Strangely enough. You know we -- of markets they were -- where it's very hard to know what to do. Because a lot of correlations that we thought we understood five and ten years ago have changed so what do you do next you know if I had the headlines for tomorrow. I'm not sure what I would do in the markets. That's really the problem I think we face.