Hedge Fund Trend Follower

Aren’t these the guys (that is, ‘Hedge Funders’) that as an industry were negative in their returns in 2014?  In Q4 2014 we began a thesis that would see European stock market outperformance (vs. the US) as the Euro is leveraged for asset market appreciation, USA style.  Well now some “hedge funder” on CNBC lets the world in on the play…

Hedge Funder: I like European stocks more than US

It is no coincidence that I am now becoming cautious on the European stock play (pending a potential, even likely test of major support we noted in an NFTRH update this morning).  Why?  Because these guys seem to be a herd like no other.  They are called Hedge Funds and people think ‘ooohhh, they must know what they are doing’.

But what they actually seem to do is momo trends and drive them too far, eventually not being smart enough to get out of the way of the fallout.

Listen to this guy.  He basically states ‘I am a trend follower’ for viewers of CNBC.  If my analysis is correct, he may be right about the longer-term trend but it does nobody any good to get in front of a camera and tell millions about the trend you are following when things (USD, Euro) are at extremes and other things (European stock indexes) are at resistance points.

Video Length: 00:05:07

 ha ha ha… she mentioned Alice in Wonderland. i love it

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