Thoughts on private equity groups’ shares, will the fact that credit (especially of lower grade debt) will be harder to come by ad much higher at a premium create troubles for the refinancing of their debt. I would be interested to see their debt time tables in the 10-K. If there is a high run up in these stocks to these high debt maturities it could pose a good shorting opportunity.
The fact that the fed has increased the fed funds rate which bring the banking system a bit more to normal. This is great for the Vine strategy with the USD rising. I will look into trading around the second segment of the strategy.
This is a long term strategy, but it would be important to be aware of now so if the situation presents itself you will be ready. Create a Pair trade (short a company and long another in the same industry to bet on the spread) by shorting, say, Ford and longing Toyota. Over the long run the increased competition from other car companies will pressure Ford, who still has their legacy costs. Now is not the time, but worth looking into.
Could the fact that many countries seem to be looking towards exports to grow themselves out of their debt woes create a good entry point into transportation companies. If so what types will benefit, and how a potential slowdown in China offset could any increase elsewhere.