Every time trend following goes through a difficult period there are those who like to bury the strategy, but the recent bad stretch had even some believers worried. Then trend-following came roaring back in 2014 and looks ready for an extended run as market trends and volatility have gotten their mojo back.
Will the Chinese Year of the Goat see a prolonged weakness in the yuan by the People’s Bank of China? (PBOC) The yuan fell 3% against the U.S. dollar between October 2014 and mid-February 2015, and lost 4% during the first five months of 2014.
Equities are faced with a bad news/good news scenario in 2015. The bad news is that the Fed will no longer support the market with endless QE; the good news is that the actual fundamentals are looking better than at any point in this long, strange recovery.