“Information Volatility” Sures Makes the Case for Trend Following

A man with a way for words:

Helicopter Ben Bernanke’s Federal Reserve is dropping trillions of fresh paper dollars on the world economy, the President of the United States is cracking jokes on late night comedy shows, his energy minister is threatening a trade war over carbon emissions, his treasury secretary is dithering over a banking reform program amid rising concerns over his competence and a monumentally dysfunctional U.S. Congress is launching another public jihad against corporations and bankers. As an aghast world – from China to Chicago and Chihuahua – watches, the circus-like U.S. political system seems to be declining into near chaos. Through it all, stock and financial markets are paralyzed. The more the policy regime does, the worse the outlook gets. The multi-ringed spectacle raises a disturbing question in many minds: Is this the end of America? More…

Maybe he is right, maybe he is wrong, but at the end of the day all of the action or inaction of “public” leaders is no way to run your portfolio. You can’t follow the “funny-mentals” generated by these folks for your money-making insights.