My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I adhere to the philosophy of trend following.
Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets me apart from other traders is that I am not only concerned about the return on investment but how much risk I will have to tolerate to achieve my goals.
The Road To ( Economic) Hell
Pretty strong words were used by the prime minister of the Czech Republic,Mirek Topolanek regarding Obama’s economic plans. Mr. Topolanek holds the EU’s six-month rotating presidency. He believes that the European Union governments must avoid this type of spending ( $2 Trillion dollars) to get out of the current recession ( Depression?). His views were not totally accepted by his colleagues. Is it that Mr. Topolanek is just going through a rough time personally since he was ousted by his own parliament after a losing a no confidence vote on Tuesday?
Regardless if he is a loose cannon or just going through a rough time…his views exemplify the growing discord between the European Union and Washington over spending plans. Besides the spending plans there has been discord as far as interest rates. All of this nice verbage comes before the upcoming Group of 20 nations summit. The general EU consensus or hope is that the Obama will agree with them on tightening oversight over the global financial system. The EU leaders are looking for leadership coming from Obama. Actually isn’t all the world hoping that the US can lead them out of this crisis. Even with all this hope it is very obvious there exists dire concerns regarding the actual amounts of the spending plans. Many think in both the US and the rest of the world the stimulus package and banking bailout will undermine the stability of the global financial market. Truly this type of spending is unequaled in the sum of all our history.Worries abound throughout the world, even Latin American cause for concern is that Obama administrationג€™s propinquity towards annulling free trade agreements. Another fact, as bad as the situation is in the US, it is worse in many locales.
It is important to realize that one of the causes of the Great Depression was protectionism. Protectionism is raising it’s head as well as nationalism. In conjunction, it seems that countries are trying to devalue their currencies. This is one sure one to reduce debt…but it also raises the specter of inflation.
The question is which road are we headed? How do we protect our assets. I have my answers ( Trend following of commodities,financials and currencies with managers that understand risk) .
What are your answers?
Andy Abraham
www.myinvestorsplace.com
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