Relative Value Play
Sell GEAR (leveraged long ASX200)
Sell BBUS (leveraged short S&P500)
*** GENERAL AVICE ONLY***
Date: 31/1/2024
Recommendation
Sell GEAR 27.44
Sell BBUS 6.58
SELL
Rationale:
We initially recommended a high allocation of this relative value trade, which is no longer appropriate given the recent strength in Tech stocks in the US and the failure of the ASX200 at record high of 7630 for the 4th time in 3 years
We believe the US investor optimism is extreme, although likely to last for the remainder of earnings (next 3 weeks). The trade is down 3.8% and a liquidation of half the position is appropriate.
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.