Preparing for the Future.....
One of my favorite bloggers posed this question.
It is one that I focus on almost daily....actually multiple times daily since I fancy myself as a futurist.
At this point, it is probably one of the most difficult times to gage future direction based on the fact that entire economies are dependent on the whims of governments and central bankers. We are on the brink of finanicial collapse, major conflicts, and manic/depressive market behavior is at an all time high.
Being defensive is the key. You want to be the world's tallest midget. What is strange now is what is the definition of defensive....Long dollars or short dollars? Long the market or short the market? Long interest rates or short interest rates? Long commodities or short commodities?
All good questions that can go either way at this juncture.
At this point my bias is as follows...rising interest rates, short the market intermediate term, long dollars, and short commodities intermediate term. I define intermediate term as six to eighteen months. As far as short term....roll the dice and have some fun.
The above are simply a bias...things are changing very quickly and so are the rules....being adaptive is as important now as ever. This is a very challenging time for someone who likes to take a stance and stick with it.....who knows.. maybe the chimps are coming into fashion in my world.