What are we going to do now?<\/p>\n
Before we answer that question, we have to answer another one: What the hell is going on?<\/p>\n
I\u2019m sorry I haven\u2019t written in a while, but the volatility, the gyrations, and the United States\u2019 rapid descent into socialism has had me distracted. The massive headache doesn\u2019t help. My anguish is truly unbearable.<\/p>\n
So what\u2019s the story? What are we going to do? How is this going to end?
\nWell the first thing, ladies and gentlemen, is an announcement. It\u2019s not going to make my many friends in the hedge fund industry happy, but here goes anyway: The hedge fund industry as we know it is over.<\/p>\n
That\u2019s right. It\u2019s over. The cause of this once great bastion of capitalism\u2019s demise is simple. There are too many people masquerading as hedge fund managers who know nothing about managing risk, know nothing about hedging, and perhaps know nothing at all.<\/p>\n
Certainly they don\u2019t know anything about managing money. Just look at their recent performance. You know things are bad when funds with less than 500 million in assets under management are going out of business as fast as funds with billions of dollars in assets under management. If this is not a sign \u2013 how about all the funds that are down more than 30 percent? Can you see it yet? It\u2019s absolute insanity. There\u2019s no rhyme or reason to what\u2019s going on.<\/p>\n
Over the last couple of weeks, I\u2019ve spoken to hundreds of people asking what\u2019s going on in the market, what\u2019s going on in the economy, what\u2019s going on with the government, what\u2019s going on in Europe and Asia \u2014 and they all get the same answer: I don\u2019t know.<\/p>\n
\u201cIsn\u2019t it a global crisis, because of frozen credit markets?\u201d they ask. Sure, I tell them: That must be true because I read it in the same newspapers they do.<\/p>\n
That, my friends, is the problem. When market mavens who are supposed to be a source of guidance and insight tell you that nothing is working, that they don\u2019t understand what\u2019s going on, that up is down and down is up \u2013 it means that things are really bad.<\/p>\n
And while I believe we haven\u2019t seen the worst of it, I know one thing for sure there is some good news. For the time being, we\u2019re stuck in the mud, but the good news is that it can\u2019t stay bad forever. Eventually things will turn around, and the economy and the markets will start working again. Life will be back to normal. And when normalcy returns, the hedge fund industry will be completely different.<\/p>\n
There will be fewer funds, less money allocated to them, and more regulation. The changes are coming. By this time next year, a new hedge fund industry will be emerging, one that looks more and more like the mutual fund industry. I don\u2019t know if this is going to be good or bad. I just know it is going to happen.<\/p>\n
In the meantime, before it gets to cold, go outside and enjoy the leaves that are left on the trees. Have a glass of warm apple cider with your family. Time with family is much more important than time spent looking at a screen full of red ink and is no matter how screwed up your family is, more fun.<\/p>","protected":false},"excerpt":{"rendered":"
What are we going to do now? Before we answer that question, we have to answer another one: What the hell is going on? I\u2019m sorry I haven\u2019t written in a while, but the volatility, the gyrations, and the United States\u2019 rapid descent into socialism has had me distracted. The massive headache doesn\u2019t help. My […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-3883","post","type-post","status-publish","format-standard","hentry","category-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/posts\/3883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/comments?post=3883"}],"version-history":[{"count":0,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/posts\/3883\/revisions"}],"wp:attachment":[{"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/media?parent=3883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/categories?post=3883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/tags?post=3883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}