Bubbles In Stocks,Commodities and Real Estate?

bubble
Has too much liquidity throughout the world caused bubbles in stocks,commodities and real estate again? I have my opinions and others have theirs.What can be considered interesting is that a high level official from the Bank of China has come out publicly and stated in his opinion there are “Asset Bubbles throughout the world”. Think of the potential consequences. As we are trying to dig out of the most recent bubbles.. they are inflated again…. & what can that cause? Is more pain on the way? Will there be massive inflation or deflation? Who really knows? Did the price of crude go up too quickly because many thought the global recession is over? Has crude gone up because of US dollar weakness?
This is what fundamental analysis try to figure out. The difference between fundamental analysis and trend following is that crude did whatever it did because “it did”. The price is the key. I find it very hard to figure why something has happened or will happen.On the contrary… with price action… it simply does happen. Trend following is all about that…reacting to price action and following the trend. To me this so logical. I find it so hard to understand that so many try to figure it all out via the news or opinions. Isn’t much easier just to follow the price. If the price goes above a certain threshold, I will make a small low risk bet and see what happens. In many cases these trades do not work. However occassionally trend followers stumble into some very big trades just by making themselves available. This is really what commodity trading is all about.
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