Trend investing vs. fundamentals – Gold and the US Dollar Index

Like our post last week, here is another, a fundamental rant on Gold. This one deals with the US Dollar. Like all of these types of fundamental articles, they fail to connect the totality of the global flow of capital.

The path to monetary collapse By Alasdair Macleod Goldmoney Insights May 21, 2020

Once again, this article is tortuously long. It focuses on the fundamental meme of the US Dollar collapse. Busy people do not have the time or energy to read articles like this. Never mind the validity of content of the article. The dollar collapse crowd has been ranting for decades. These rants are fear porn. As if we don’t have enough of fear porn in the mass media at the moment.

The best thing to do, for individuals (and money managers) is to just follow the price action. Filter out all of the rant fear porn articles (and teevee, and tubes and podcasts). One of the fear porn podcasts this AM is droning on and on about Deflation versus Inflation (another fear porn topic going on for decades). They barely mention the price action of Gold. This is almost comical.

To their credit, the Macleod article, does have a chart of Gold with the 50 day and 200 day moving average. We post here a chart of Gold relative to a 50 day and 200 day 20% annualized rate of growth (the bottom indicator). This is a Bullish trend investing trend filter. Almost everything (indexes) else doesn’t come close.

As always, trend investing is not a prediction, and is not a forecast.

Blog comments welcome.

Gold (/gc)

Published by Trendanomics

Trend trading analysis of the markets with simple trend trading strategies.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: