Top 5 Trades for 2014

No. 4: Euro Area 5 Year Rates – Go Long and US 5 Year Rates – Go Short

Top trades for 2014

The trade: Long EUR swap 5 year rate. Sell 5 year Treasuries

Even though the Euro zone is on the rebound, Goldman still feels that the US economy growth will surpass that of European countries. The recommended move is to go short on US trades, as going long might underperform. As the Euro zone will begin its comeback, it is advisable to go long on EONIA stocks.