Commodity Trading & Trend Following

Maybe it is me but will all these huge numbers…a billion dollars here…a trillion dollars there.. my head was starting to hurt. I do not think I am alone with these worries… except for an ostrich with it’s head in the sand. I would believe that most people would agree they have a hard time comprehending the actual numbers involved.

It seems so many are looking for guidance in order to survive these difficult economic times. Did you Financial Advisor let you down this year. Is your IRA or 401k down 25-50%. The fact is that most Financial Advisors do not know or understand commodity trading or futures trading.

No one really knows which direction we are headed however it seems that Nouriel Roubini and Eric Sprott, CEO of Sprott Asset Management are more leaning toward the direction of an Economic Depression. So far we have not a crash similiar to the 1929 crash however in many sectors ( building, real estate, manufacturing) there exists an economic depression. The causes of depression are wide spread. From Cheap money to reckless lending. I hope as you do we do not end up in a situation similiar to the 1930 depression.

Aren’t we all having issues with the current “Recession”. Now Warren Buffett and Berkshire Hathaway Inc is having theirs.

It is almost ironic that this simple cartoon can get across the issues of inflation, govt spending and more so how Cheap Money put us in this economic situation. Inflation is a wealth destroyer. There is a battle between Deflation and Inflation currently

Everyone seems to want to know when they can pick up all the bargains in the market. Seems that risk is a forgotten word.There are those that think that this is simply a BEAR Market rally. There have to be reactions and markets do not go down forever. The truth is only time will tell. The fact is the Dow rose 39.51 points, or 0.5%, to 8017.59, its highest close since Feb. 9. The Nasdaq has risen 25% during its four-week winning streak.

One reads the papers and all are claiming Inflation is non existent. Well, maybe for the short run it might be. Looking back at the Great Depression of 1929 there are many similarities and inflation could rise it’s ugly head.
In the midst of the Great Depression there was a strong upward trend in commodity prices [...]

What do you think about the recent move up of both the S&P and Oil…
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There exist many similarities between the current economic debacle and the Great Depression of 1929 ( however we are not at 25% unemployment and many other aspects).

As GM Goes, So Goes The Nation famous remark by Charles Wilson is as appropriate now as it was in 1953. Charles Wilson declared before Congress that what was good for the country was good for GM and vice versa. Does Gm’s rise to power and decline towards insolvency parallel the rise and fall of the US? GM’s market cap reached approx $50 billion in 2000. Currently its market capitalization dropped below $1 billion to levels last seen during the 1920’s.