Global macro trading has made a huge comeback the last two years as financial markets have completely crumbled. While most people were long and levered most macro traders were shorting housing, financials, going long and then later short Treasuries and doing all kind of stuff in the commodities space.
In fact in 2008 there were only two strategies whose performance was, on average, positive for the year. Global macro trading along with dedicated short sellers made money while everyone else was losing it. In fact according to Credit Suisse and Tremont Advisors global macro is the most successful hedge fund strategy since 1994, the start of their database.
If you had a chance to read “Inside the House of Money” copyright 2006 you were able to read interviews with several great macro managers, and one guy who later blew up, talk about their views going forward. Macro managers were the only guys out there that were warning people not only about housing but about debt in general and all of the dangers inherent with misused leverage. Is it any surprise that these guys make money?
If any of this comes to you as a surprise then you need to rethink your strategies as it should be obvious that looking at the macro view, big picture, etc is imperative to avoid huge investing disasters. They were positive as a group during the 2000 bear market and they were once again positive in the 2007-2009 bear market.
What do you do if you want to participate in global macro trading but are new to it? What about if you are already a macro trader but want help in order to find even more great trading ideas? In November 2007 The Macro Trader was launched to the public and has done well. In fact its model portfolio generated a 1.17% return in 2008 against a 50% loss in the SP500. If you aren’t reading the weekly newsletter you are missing out on actionable trading ideas across several asset classes.