A Consistent Bear Has Lessons to Heed

John Hussman writes:

Monetary interventions can periodically fuel speculative runs, which defer and spread out the adjustments that result from persistent overvaluation and misallocation of capital. But they can’t get around the inevitability of those adjustments. The only real choice policy makers have is how large a bubble they choose to see collapse. On that front, we’re clearly in better shape than we were at the peaks of 2007, 2000 and 1929, but conditions are generally more hostile than they have been in the vast remainder of market history.

Those words add little value to the operational trading of a trend following trading system. His wide fundamental analysis (more in his article) is NOT the daily grind of trend following.

Why post it? His words are a reminder that from a economic, political and societal vantage–chaos is right below the surface (if you are honest with yourself). And if you are going to try to be in a position to capitalize when the chaos breaks out–trend following makes terribly good sense.

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You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.