Here's Waverly Advisors' Excellent Presentation On The Economy And The Coming Slaughter Of Sacred Cows

calf cow bull

Photo: lostajy / Flickr

In their latest presentation on the state of the economy, Waverly Advisors weighs in on which “sacred cows” in the U.S. budget are likely to be taken to the slaughterhouse as Congress debates how to close the deficit.They also warn that taking firm long-term positions for most trades remains a dangerous move given market uncertainty.

They also have a great Simpsons reference.

What's guaranteed?

Waverly sees widespread overextension

Although consumer discretionary stocks appear immune

VIX appears to be cooling off

And low volatility has created opportunities for hedgers

Stay away from rates trades

Waverly's gold trades remain confined to tactical ones

Waverly has a bearish outlook for crude

But one thing is certain: taxes will go up

Waverly remains unconvinced of a housing bottom

Spain will fall further

In Japan, upcoming elections will likely yield huge amounts of easing

Middle East turmoil has not been strong enough to reverse oil's decline

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