TwoCitiesCapital Posted December 18, 2015 Share Posted December 18, 2015 http://video.cnbc.com/gallery/?video=3000466813 Nice Gundlach idea: Long closed-end high yield/short S&P 500. I put some of it on HIO/SPY. Hmm, I see a number of ways this could blow up. Disclaimer: I don't short. His pair trades have worked out pretty well in the past....but yes, there are risks with shorting. Disclosure: Short SPY Link to comment Share on other sites More sharing options...
ni-co Posted December 18, 2015 Author Share Posted December 18, 2015 http://video.cnbc.com/gallery/?video=3000466813 Nice Gundlach idea: Long closed-end high yield/short S&P 500. I put some of it on HIO/SPY. Hmm, I see a number of ways this could blow up. Disclaimer: I don't short. Sure, pair trades always have some blow-up risk. With a mid-term horizon I can only think of one blow-up scenario: an inflationary environment. You could do the less risky version of this, though: sell some stocks and buy some closed-end HY funds to replace them. Link to comment Share on other sites More sharing options...
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