Ep. 81: A Trend Following View of Hugh Hendry with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Uncertainty
I own gold and I'm short the S&P. That was a wonderful trade for five years leading to the end of 2008. It's been a profitable but less predictable trade since the intervention of quantitative easing in March 2009. The risk premium goes up when the gold price goes up. More precarious societies across the world are more envious of your gold assets at $3,000 than at $300. There is no valuation argument that protects you against the risk of confiscation.
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