Will Quantitative Easing Last Forever?
Without being a doom and gloom or perma bear, How can money be printed out of air. All of the Quantitative Easing has been disruptive in every asset class. There was a segment on CNBC and I totally agree with the fact that
There Is 0% Chance That This Ends Smoothly
Managed futures are going through one of the toughest periods in 35 years both in draw down and duration of draw down. However like a rubber band stretched too strongly in one direction, it can bounce the other way.
For example – This is the second longest draw down for this commodity trading advisor ( however your greatest draw down and duration can easily be ahead of you).
My personal opinion is when this does end…as in the housing crisis…as in the Nasdaq bubble…as in 2007-2008
It ended very badly.
My simple suggestion is have a trading plan. Do not think that trading is easy. There will always be draw downs and in the above example long duration’s of draw downs.
Past performance is not necessarily indicative of future performance