via NYT
>
Source:
Hedge Funds, Unhinged
LOUISE STORY
NYT, January 17, 2009
http://www.nytimes.com/2009/01/18/business/18hedge.html
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof. —John Kenneth Galbraith
Putting aside its incredible product line and pipeline of more, its still attractive valuation relative to earnings, and its $100 per share of cash that may be used for a dividend soon, Apple's stock has gone parabolic. And, parabolic moves always end one way, back to the place where the parabolic move began. Now, AAPL can of course power higher to who knows where in this move but the largest market cap stock in the world has now entered a tenuous phase, strictly technically speaking. But I digress. German investor confidence, the ZEW, in the next 6 months rose back...
read more »
Tweet
Facebook
Reddit
Digg this!
January 18th, 2009 at 10:46 am
Not as bad as I would have expected. There is some talent out there.
We’ll see what happens as 2009 unfolds, possibly a repeat of 2008, with a tsunami of withdrawals hitting the hedge funds if they don’t manage to make money, or are visibly doing “crazy stuff” and incurring greater risks than they normally do.
Add to that the overwhelming desire to “make back the losses”, and we are likely to see hedge funds driving volatility higher, pushing into more volatile areas trying to ride the larger swings.
January 18th, 2009 at 11:51 am
I hope the demand for these blood suckers dries up. I don’t think we have seen the end of blow-ups and outright fraud. What exactly do Hedge Funds do except act as a compensation system and add to the volatility and speculation. They propagated over the last 8-10 years as a regulatory arbitrage play. I challenge anyone to tell me what they do for the economy as a whole and society in general. They add nothing.