Quarterly earnings have been decent so far, but revenues not so much. Here's a currency play on the reports.
It's time for the summer crop of earnings, and Rebecca Patterson, chief investment officer at Bessemer Trust, has a way to trade them using currencies.
"We're beating on earnings, we're not doing so well on revenues," she told CNBC's Brian Sullivan. And as the reporting season continues, she doesn't expect the news to improve.
"Usually equities will perform best in the early part of the earnings season, and then the hope and optimism tapers off."
So how should you protect your stock position using currencies?
"We're looking at the Swedish krona," Patterson says. She points out that over a third of Sweden's equity market is owned by foreign investors, and it's weighted toward technology and telecom. That means when "U.S. stocks go up, Sweden stocks go up, the Swedish krona goes up."
On the flip side, a downturn in U.S. stocks typically means a downturn in the Swedish market and the krona, so you can sell the krona to hedge against the possibility of stock market weakness.