Financially, the answer is clearly yes.
They invest trillions in thousands of hedge funds, overpaying for mediocre performance in total. Maybe that's a fad and they want something to brag about at the "club".
Last quarter I see hedge funds got another $43 billion to invest. Hmmm. the beefers lose billions for their investors with numerous blow-ups, but the "rich" get suckered into ploughing more money into them.
And the fees they pay for private banking and private wealth management are simply ludicrous. They pay 1% of assets or more for ... nothing. The dog biscuits paid to Krypto run a perfectly good, diversified fund that is run according to the methods of #1 money manager, David Swenson of Yale. And last year it crushed the hedge funds.
Of course, the beefers' pumpsters and shills point to big numbers by some funds. Hmmm. There are 7,000 hedge funds or more. Why would one think that "some" of those couldn't do quite well just by ... luck ? Maybe some have truly exceptional talent. I suppose some do. But those funds are ... closed.
Why bother ? Picking a good hedge fund from 7,000 possibilities is hard. Then again, so is picking a good mutual fund from 7,000 mutual funds. Then again, so is picking a good stock from 7,000 stocks.
So if one is picking, why not stick to stocks? The returns are much better.
I keep most of my investment money in the Krypto Fund and then run my Alpha Fund by picking stocks. The Krypto Fund is managed for dog biscuits using a mostly mechanical asset allocation among diversified index funds. The Alpha Fund has large positions in groups and stocks I like. I keep its size at a level that I can bear the swings in value. If a stocks can't earn me 30% in a year in my estimation, I get rid of it.
I manage the Alpha Fund to realize long term capital gains as long as I think the major trend is up.
Recent adds: BNI reported a blowout quarter and looks OK now. GOOG is doing great after bouncing around awhile. One needs patience when buying individual stocks if one is not a trader. The big cap banks are down some. I'll give them some time, as I did GOOG.
Futures are down this AM. I've heard nothing significant so it's likely more beefer stomping and ping pong. They never stop.
Subscribe to:
Post Comments (Atom)
19 comments:
15/8 rule
DIA,SPY,IWM......out
Q's...you still would be in...but if you weren't in...you would buy at the open(should be interesting with those earnings last night)
sir can you please explain the 15/8 rule again for us rubes?
it sounds like a timing formula for in & out burgers ;-)
sell... the lowest close in the past 15 days
buy....the highest close in the last 8 days
designed to get you out of weak markets( protect $$) and keep you in strong ones
dont think its for dip buyers..its a momo thing
looks like more beefer liquidations. I guess if they can't sell their CDOs they sell stocks.
Why anyone bought those structured products in leverages accounts is beyond me.
Bunkerman, how was your day off.
your origanal post answers the cdo with jucie question...to many chasing too few good ideas...the common man has no chance.
I had a fine day off. Sky & Krypto were better & better on teh sheep. They has 8 tough, big ones to herd. THE weather was fine - breezy & warm.
I was a real pro on the SMGs - really doing fine groups on my 8-10 round burst.
A good day overall.
the common man is probably bailing now with this beefer volatility ping pong, just when they should be averaging in.
No chance.
I wonder if some of the home price drops in the west & south are due to McMansions in exurbia being hurt? That's one of my long term predictions.
The price of gas and of heating, AC, etc. just has to hurt those type of homes. Plus the demographics stinks for them.
Bunkerman...should the bears press here ahead of the fed...they have sucker punched them three times with painful upper cuts...you still in the 50 bps camp...seems most think 25 bps and it's not going to be enough.
TLT back at sept highs...either that is a double top or it's going to par...real buyers or beefers...flight to safe harbors indeed.
I had thought 25 but now think they might go 50.
That would get them to 4.25 which would be neutral with inflation under 2%.
I don't think that's enough time for true double top.
I think the housing data will scare them into going 50
your GD had good numbers, frosty.
TIP is breaking out on the daily.
remember..its the close that counts on th 15/8....lmaoooooooooo
beefer ping pongsters must be getting in shape for Beijing Olympics. Some bigtime smashes & back hands and diving saves.
Post a Comment