Andrew Abraham

andy-0101 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.

Contact Details

If you are interested in contacting for speaking engagements. Please email me at Andrabr9@gmail.com or call 954 903 0638.

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Futures and commodity trading involve substantial risk. The evaluations of futures and commodities may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or an implied promise, guarantee or implication by, that you will profit, or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible, where projections of future conditions are attempted.

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Which Number Do You Prefer -1700 or 126’59?

Trend followers do not have opinions…At least successful ones…What is fascinating is the front page news of the SP 500 crossing 1700. However a much more important number is the 10 year of 126’59.

Everyone has political views however we are at a point in history where there is an enormous amount of government interference. Draghi in Europe will say one thing and the markets all head in one direction because the world is saved. The next day that comment is revised or countered and things quickly reverse. The Federal Reserve is pumping ridiculous resources into a problem that we have always felt market forces should resolve. This has kept some markets in a state of artificial valuing with true supply and demand taking a backseat. We are also obviously in a period of divisiveness in the U.S. and until we get some clarity after the elections we may continue to be at the whim of politicians everywhere.

This week was a perfect example of Thursdays and Fridays action as well as last month in June the sell offs we saw because the FED was going to slow down the sugar high. Trend followers need to focus not on the sugar high but on the reality. The reality is the 10 year which is moving up.

When long-term interest rates rise, it becomes more expensive for everyone including the federal government to borrow money. Not just long term bonds but existing bonds lose value and bond investors lose a lot of money, mortgage rates go up and monthly payments on new mortgages rise, and interest rates throughout the entire economy go up and this causes economic activity to slow down as well as guess what the other number ( stock market) to fall.

Put things into perspective. I am not a bear nor a bull…but the yield on 10 year U.S. Treasuries was just 1.48% a year ago. You do the math.

Bottom line
When interest rates go down, this encourages economic activity, and profits of companies & stock prices increase.

When interest rates start going up rapidly, that is not a good thing for the stock market at all!

Remember 1994 in the bond market? If you do not…I suggest you take a gander!

Past performance is not necessarily indicative of future performance


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