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Mikhail Liebenstein

Hedge Funds Still Making Losses

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http://us.ft.com/ftgateway/superpage.ft?ne...420081855059986

The recent stock market collapse seems to still be hitting hedge funds. According to the FT the The Children's Investment Fund has lost $1bn.

The reality is most hedge funds are bad investments in a credit crunch. If you had 100 punters at a race course placing bets, no doubt some would come out well on top and would be considered betting geniuses.

The financial markets are a bit different, and when the money supply increase lots of funds make lots of money. Right now we are in a credit deflation and so lots of funds will lose lots of money either as asset values fall, or where they hold counter party contracts and those counter parties go bust.

Expect to see more hedge funds struggle in the coming months.

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<a href="http://us.ft.com/ftgateway/superpage.ft?news_id=fto071420081855059986" target="_blank">http://us.ft.com/ftgateway/superpage.ft?ne...420081855059986</a>

The recent stock market collapse seems to still be hitting hedge funds. According to the FT the The Children's Investment Fund has lost $1bn.

The reality is most hedge funds are bad investments in a credit crunch. If you had 100 punters at a race course placing bets, no doubt some would come out well on top and would be considered betting geniuses.

The financial markets are a bit different, and when the money supply increase lots of funds make lots of money. Right now we are in a credit deflation and so lots of funds will lose lots of money either as asset values fall, or where they hold counter party contracts and those counter parties go bust.

Expect to see more hedge funds struggle in the coming months.

That's why you "dollar cost average" over eighteen years minimum.

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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