The question is… Can trend following end? First of all… anything can happen and it will happen. However as a long time trend follower, in my opinion there are numerous reasons why I do not believe trend following can or will end.
The million dollar question what is real? The rate of inflation or is really a new stock market rally? We are bombarded on CNBC or Bloomberg with one speaker after another stating... No INFLATION! The Rate of Inflation is nothing...or the average inflation will be minus x %.
Is now your last chance to be buying gold under $1,000 or is this a false breakout? All successful trend followers and commodity traders know they do not know the future. The fact is on Sept 2 Gold broke out of a multi month consolidation.
How many Stock market Bears are itching to go short the stock market index? Probably too many to count. However regardless of all the fundamental reasons and thoughts to blindly go short the stock market index, this is not prudent.