Selling Stock Short November 8, 2007
A recent survey of hedge fund managers revealed that the majority of those polled thought that the chance of the
Less than one in five of them thought that it would be bad for their businesses. No kidding – since when would a hedge fund manager who’s livelihood depends on attracting new assets and the commensurate management fees think anything would be bad for business?
As you might guess, I don’t put much in this type of poll. The reason is that the questions are loaded. Anyone with a lick of sense can see that our economy is slowing down. When you combine falling real estate prices, a falling dollar, rising food costs, rising energy prices and out of control government spending, you have the makings of a serious mess.
Another thing, hedge fund managers make for lousy economists. The idea behind hedge funds is to make money regardless of the direction of the stock market, interest rates and the dollar. A recession should be an opportunity not a challenge.
When it comes to managing money, our job isn’t to predict, but to react to the situation at hand. That’s why our 5-Point Process is so important to how we manage money.
That’s it for now.
RAC
The Stock Trading Advisor
