“The trend is your friend” is one of the most well-known slogans on the market, all those who try to go against the trend end up with unpleasantness in their accounts, however not everything is rosy even when there is a well-defined trend. Indeed, and at a stage when Bulls remain unstoppable, supported by the “too big to fail” of central banks, there is a nuisance present in any capital manager with the least common sense.
Photo by Stephan Henning.
For if it is indisputable for now that the extreme liquidity in the system is preventing corrections worthy of the name, how and where to invest when everything, or almost everything, has already risen beyond measure? Where to protect against an eventual sudden change in sentiment, which can arise at any time, but which can also take an eternity to materialize, taking into account that even the refuge assets have been under strong buying pressure, as is the case with Gold, which recently registered new historical highs. It is because if there is something unavoidable, the weight of the “gravity” of an unsustainable situation like that of current excessive liquidity, is a movement that is unlikely to end in a disruptive event.
