Could We Really Be in a Depression Right Now?

If you listen to David Rosenberg a famed economist he makes points that are very clear. Not to be negative but the facts speak for themselves.

1.GDP projections for 2010 to the 1.5 to 2 percent range
2. Unemployment is unabated
3.Chicago Federal Reserve President Charles Evans has publicly stated that government programs to help distressed homeowners have been ineffective and aren’t helping the pivotal housing sector recover.
4. National Association of Realtors stated last week housing is at a 15 year low

How much stimulus money needs to be injected? How much of it will work or better said wasted!

The fact in the Great Depression there were similar rallies in the stock market and many thought the worst was over. The fact was the stock market ending falling almost 90% and took 25 years to recover. Too many people do not understand that Japan the virtual leader of the world in the 1980s is still in dire straits. The stock market of Japan was at 39,000 today approx 9,000. Let alone the real estate market is similar in direction.

What do you do? How can you protect yourself? Solution is trend follow with a well thought out plan that includes a proven methodology that includes a risk per trade…risk per sector…and total risk on the portfolio….with simple entries and exits. If this is too much for you…allocate to commodity trading advisors that understand risk and have the discipline & patience to follow them long term.

Be a long term investor in trend following not blindly buy and hold ( pray) in just the stock market.

Andrew Abraham
Andrabr9@gmail.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money

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