First, put all of your money into S&P index funds and short bets against the Australian dollar. Guaranteed* 13% return.
Second, put all of your money into five-year Eonia bonds and borrow as many five-year Treasuries as you can find and sell them. No guaranteed return, at least according to MoneyBeat.
“Currently, a very accommodative monetary policy stance is largely priced in in the U.S., while the market is underestimating the possibility that the European Central Bank can provide further easing, even by cutting the deposit rate below zero,” Goldman wrote in a note to clients about this trade.
“All told, we see room for markets to re-price U.S. rates higher during 2014 without much spillover into euro rates,” the bank said.
Part three of this series tomorrow, giving you plenty to think about while you're ignoring your more annoying family members on Thursday. Then, back to work Friday (not for us, of course).
*Not actually guaranteed, wink wink.