Elliot has observed hedge funds expressing bullishness on the dollar in two main ways.
Hedge funds are also taking long positions in exchange-traded funds specific to sectors likely to benefit from a loosening of regulatory constraints.
In response, Elliot says hedge funds are moving into short positions on long-duration bonds, which is five years or more.
Finally, given the rising uncertainty around inflation and deficit spending, hedge funds have shifted to increasing their positions in gold by buying gold futures contracts, he said.
These contracts set up agreements on the purchase of a predetermined amount of gold at a set price by a set date.
Persons:
Bob Elliott, Elliot
Organizations:
Service, Federal, Trump, Republican
Locations:
Washington