|Unwinding the Kerry trade - Commentary: Sell Iraq, buy the economy|
by w1ld at 10:03 am EDT, Jul 29, 2004
] I call it the Kerry trade, which is not to be confused
] with the "carry trade," a major position among hedge
] funds involving money borrowed at low U.S. interest rates
] and invested in products that pay higher rates.
] The Kerry trade has been rampant on Wall Street in the
] last several weeks as large investors sell their holdings
] to hedge against the possibility that the Massachusetts
] junior senator could actually, might possibly win in
] The theme behind it is that if a tax-and-spend Democrat
] wins the White House, the stock market will immediately
] tank, so better to sell now and be in cash as long as the
] polls indicate that it could be a close vote.
] But the theme is wrong for several reasons.
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