 |
| Investment Frontiers Symposia (Photo credit: apec2011ceosummit) |
This is the first time in financial history that the retail investor has the same investment tools that hedge fund managers have been using for years to produce huge market-beating returns regardless of market conditions.
The reason retail investors are constantly losing, especially in today's market conditions, is because they are too one dimensional. For the most part, they invest in traditional stocks and bonds. And they do so through mutual funds or individual stocks or bonds. In a hyper-competitive investment climate, this dramatically limits their ability to be compensated for the risks that they take. This economic environment has exposed that fact.
Hedge fund managers, however, don't have these restraints. They can invest in any asset class: stocks, bonds, commodities or currencies, private equity, real estate, etc. Moreover, they also have the ability to go short. This is a key advantage that you won't find in a passive, asset-gathering mutual fund.
It's this flexibility that is crucial to investing success, as we have seen in recent years with the unprecedented volatility and bear markets that have devastated long-only stock investors.... Continue to read.
No comments:
Post a Comment