Peak Cattle? Will it be like Peak Oil and Gold? $GLD
If you live in California you are well aware of the current drought situation. I live thousands of miles away however read an article this morning which was disturbing at least and confirming in another. Some professor was stating the that current condition of drought in California is just the beginning and going to get worse. Can you imagine what this will do to produce prices and all agricultural & meat products.
As a trader for the last 20 years most times sensational ideas like these…peak oil…gold to $5000 do not materialize. However as much as past performance is not indicative of future performance I have been long live cattle, lean hogs and feeder cattle for quite some time in my trading programs. The article stated that herds of cattle are at 50 year lows. If the article is right McDonald hamburgers are not going to a cheap lunch.
When trading or trend following, have a plan. Do not follow the news like in articles like this or even the recent talk about George Soros huge short position on the SP 500. Follow your trading rules. Know your risk tolerance. Know your time tolerances. Learn to be consistent. I trade full time and have traded with a large portion of my families net worth since 1994. I have taken the responsibility. It is never easy. There are always losses and tough periods…however success can only be potentially achieved by discipline, patience and perseverance.
Past performance is not indicative of future performance