12 June 2013

Beware of Economic Forecasts

When a leading investment manager states that there is a '60% Chance of Recession in the next 3-5 Years' the firm unwittingly confirms that predicting the economy is nearly worthless as a tool to base your investment decisions on. Nebulous forecasts such as these should be considered to be advertising for the fund manager and a way to get attention in the financial media circus hungry for the next eye-catching headline.

11 June 2013

Hedge Fund Performance: do not compare Apples with Oranges

Comparing Hedge Fund performance with the S&P Index is comparing apples with oranges (Goldman Sachs Report). One may have a critical view of Hedge Funds – and they are far from perfect – but they are expected to provide satisfactory returns on a risk-adjusted basis and diversification away from mainstream investments such as large-cap equities that dominate the major stock indices. A less simplistic analysis is needed and in addition those looking to invest in hedge funds need to fully  understand the instrument rather than being taken in by a sales pitch.

How to spot a bad financial planner

Useful article on Money-Rates.com