Perhaps the most obvious trade in the world right now is to sell U.S. stocks in the expectation that they will be hurt by the new coronavirus wave and buy stocks in Europe where it has been brought under control.
U.S. stocks are much more expensive, even as Europe reopens and many U.S. states reintroduce restrictions on business to control the viral spread. How could anything be more natural than to sell the overpriced higher-risk market and buy the cheap lower-risk market?
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