Top 5 Trades for 2014

No. 5: Long S&P 500 and Short AUD Futures

Top trades for 2014

The trade: Buy S&P 500 futures and sell AUD-USD futures

The logic behind shorting AUD futures is the view that the Australian dollar will be the worst performer out of all major currencies in 2014, explained in part by Australia’s country specific risks. On the other hand, investing in US equities remains a profitable trade, making it our fifth-best top trade for 2014.