Risky assets have gotten pounded in recent weeks, and this strategist thinks the worst may be over.
Willie Williams, director of global macro sales at Society Generale, is ready for a change. Noting the beating that commodities, equities, and other risky assets have taken lately, he thinks the time is right to wade back into risk-on currencies.
Williams told CNBC's Melissa Lee that he recommends buying the Australian dollar against the Swiss franc at 0.9050, with a stop at 0.8850 and a target of 0.9600.
"Over the month of September we saw commodities sell off very hard, we saw equities sell off very hard, and emerging markets as well," he says. Williams also notes that Australian economic data is stabilizing, and with potential new policy initiatives in the euro zone, "I think we're at risk of seeing the rally in risk assets continue."
There are other risk-on currencies Williams could trade, like the euro. But, he says, "there are still a couple of minefields" ahead for the single currency, and the Australian dollar is a better proxy for both emerging-market sentiment and commodities.
You can watch the whole discussion on the videotape.
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