Hyperinflation from a Trend Followers Perspective
First of all, I can not predict if we will have inflation or deflation nor can anyone detail the future. More so trend followers do not care…all they are seeking is a trend….an up trend or down trend .However with all the money that has been printed it almost seems like a given. If history repeats itself as in 1998 we had debt deflation in the Far East which lead to inflation in those countries.
If one is to guess if we have this inflation or hyperinflation, possibly the safer bets might be international stocks such as Nestle or companies selling basic products. The other alternative could be in my personal opinion is that trend followers could ride the up trends that inflation could bring about if it actually occurs. Real estate could be a disaster since interest rates could also go up and this would be a detriment to the housing market. Regardless opinions mean nothing. One has to have a well thought out plan full of risk management. Time will tell but if I was a gambler in which I am not…I could see inflation on the horizon. There are no guarantees in any investment idea. All of them, including trend following have draw downs and even worse, extended draw downs. There is no retirement in a box. Your worst draw down when trend following is ahead of you not behind you. This is the reason risk management is so important.
Trading futures and options involves substantial risk of loss no matter who is managing your money and is not suitable for all investors. Past performance is not indicative of future results
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