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.
If you are interested investing with Andrew Abraham via my managed accounts please come to Abrahamcta.com.
Can Gold be the Next Currency?
I am not a gold bug or an end of the world fanatic… but in all seriousness…Can Gold be the next currency? Honestly…As an investor, I became very concerned about having my assets denominated in U.S. dollars. Even if I was clever enough to denominate my assets in other currencies…the fact is they are all paper not truly backed by anything. However as a commodity trading advisor I believe anything can happen and that means gold can fall in value as well.
Gold has experienced an unprecedented run. One can look at the lows of the beginning of the decade and Gold has out performed. At one point, for example, it sprinted from $1,050 to $1,218 in under 30 days flat only to fall back down.
As much as I try not to have an opinion…there are many smart people touting gold as the next ” real ” currency. David Einhorn is a big believer as well as John Paulson. Both of them were dead on target on the subprime blowup when most did not see it coming. Paulson became a Billionaire from that trade. Now he is betting approx 40% of his fund on everything gold. There are other smart people that did not see the subprime blowup such as Warren Buffet and Bill Gates. The Subprime crisis & Recession of 2008 and 2009 was not kind to either of them, erasing approx $17 billion of their combined net worth.
Will Gold be the trade of a lifetime?
Some argue that gold is a bubble…and a terrible asset to hold in ones portfolio. The fact is from the lows ( depending on exactly when you look) gold compounded at 6.5%. That surely not a bubble. The recent pull back was expected as gold made front page news.
Time will tell..I prefer not to predict ( actually never)…and simply follow my methodology. If Gold goes to whatever price I am sure I will catch it as a trend follower. Maybe gold will go down. maybe Sugar will go through the roof..No one knows the future… however…if gold does become the next real currency…Trend followers and commodity trading advisors should do very well..
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Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money
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