Analyst Who Predicted Trump's Rise Bets On Le Pen Victory

Posted April 21, 2017 9:45 am by Comments

By Tyler Durden

Don’t bank on a relief rally in the euro area anytime soon…
“Le Pen’s momentum is a slow-moving reaction against the men of Davos – as we have seen with Brexit and Trump – but markets don’t want to believe it.”  

That’s the conclusion drawn by Charles Gave, founder of Hong-Kong based asset-allocation consultancy GaveKal Research, who, as Bloomberg reports, predicted the triumph of Donald Trump in the U.S. election, and is now betting on a win for the anti-euro National Front candidate.

Markets are underpricing the prospect of Marine Le Pen emerging victorious in the French election as a sea of undecided voters throws into sharp relief pronounced apathy for center-leftist Emmanuel Macron — the front-runner by a whisker — and the backlash against the European Union project.
 
Given the prospect of a Le Pen victory, Bloomberg adds that Gave, who has been researching tactical asset allocation for more than 40 years, is advising clients to adopt long positioning in the pound as the U.K. would benefit from haven bids, and shorts on inflation-linked German bonds amid the risk of deflation in the euro area.
“The market is talking about the nightmare scenario but it’s not pricing it in” said Mark Tinker, head

Source: ZeroHedge

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