With market volatility and worries about the commodity downturn, China’s economic weakness and rising interest rates weighing on investors, now may be a good time to opt for the relative safety of pair trades as a hedge against a bearish stock market turn.
In a new report, Morgan Stanley analyst Jay Sole discusses five apparel pair trades the firm recommends this year.
“We believe multiples will generally rise on both a relative and absolute basis, but in case they don’t and 2016 is like 2015, 2008 or 2000, we like pair trades,” Sole explains.
The pair trades that Sole includes in the report were…
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