Roubini is Bullish on the Stock Market What does that Mean For Trend Followers
Roubini is bullish on the stock market. What does that mean for trend followers? Actually nothing. It does not mean that the stock market is safe to invest in. It is simply Roubini’s opinion and he has been wrong.
Roubini was very wrong…According to CNBC, Dr Doom Nouriel Roubini has issued a call that the stock market is expected to fall by as much as a further 20%, not stopping there he also stated that a double dip deeper deflationary recession is likely. Roubini made his call on Thursday with the Dow trading at 10,185.
Actually one could even take this a bearish omen. Regardless Trend followers do not predict. We react. I have been long the SP and ND since the end of Dec 2011. I had no prior knowledge. The SP and Nasdaq happened to be one of the strongest markets at the time, I was able to risk than 1% of my total account size to see if the trade would work as well as all my other risk management filters all flashed a green light, I took a shot and said to myself “How much is this going to cost me to see IF it work”. No predictions …no emotions..just following my plan that I have been following for years. Profits are made over long periods of time. There will long periods of non profits as well as steep draw downs. This is trend following. It is not retirement in the box.
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