Moody’s Cuts Spain’s Triple-A Ratings
It is almost funny my last post was regarding the next crisis that could be US State & Local Govts and then in today’s news the bomb shell that Moodys has cut Spain Triple A rating. On one level was that expected and already priced in? Include the fact that Anglo Irish bank could need total capital of €34.3 billion in a worst-case scenario. Putting all these pieces together would could easily agree with Prechter who is calling for a depression. My goal is not to predict because I like everyone else do not know the future but rather react. I bought the SP500 & Nasdaq about a month ago regardless of my personal opinions. I purchased because the methodology I use issued a buy and my partners purchased. I programmed models that are based on clear cut rules and money management not opinions. Opinions can cost you money. These opinions cost me money in the past. Now I rely on ideas and methods that myself and my colleagues use to buy or sell anything. We have no idea about cotton or sugar other than they were going up and we had a low risk buy signal. This is what trend following is …. utilize a methodology that encompasses low risk bets… money management and having the patience and discipline to let it work over time.
In all logic… we could be in for a bout of severe economic issues. Trend followers do not worry about this… if the volatility gets too strong they just step aside and look for the low risk trades. Moodys can cut Spain’s credit rating or Ireland’s or whoever’s… It does not matter..there will be trends to follow and money to be made over time for patient disciplined investors who have a plan.
Futures trading involves risk. People can and do lose money