CLOSING SHORT FIAT
A PART OF OUR MARKET THOUGHTS PIECE INTO Q1
Part of our thoughts into Q1 is a positive spin on autos. See full note: Market Thoughts Into Q1
We would be long autos. The currency move is helpful, and until the tightening monetary conditions in the US hurt US growth, this is likely to continue to be the case.
Valuations are still very low, and the difference between 4x PE and 6x PE is material for price without making stocks look expensive. This rationalization is already playing out, and we would be quick to book profits should the mood change.
We close our FIAT short for a 15.5% loss.