Comments on: 130/30 Funds - Hedge Like the Big Boys? http://advancedpersonalfinance.com/13030-funds-hedge-like-the-big-boys/ Moving beyond the basics Mon, 01 Dec 2008 23:34:04 +0000 http://wordpress.org/?v=2.2.2 By: Pam Grundy http://advancedpersonalfinance.com/13030-funds-hedge-like-the-big-boys/#comment-26227 Pam Grundy Sat, 03 May 2008 01:17:38 +0000 http://advancedpersonalfinance.com/13030-funds-hedge-like-the-big-boys/#comment-26227 I don't think this is a great time to be investing in any kind of leveraged funds. The fact that this can even be pitched to ordinary investors in this financial environment is proof of Barnum's Law. I think the worst time to shuffle your 401k into risky investments is when it is losing money. That's a strategy for losing all the money you have instead of just lots of the money you have. Thanks for a good article that makes sense of 130/30 funds in a clear and concise way. I don’t think this is a great time to be investing in any kind of leveraged funds. The fact that this can even be pitched to ordinary investors in this financial environment is proof of Barnum’s Law. I think the worst time to shuffle your 401k into risky investments is when it is losing money. That’s a strategy for losing all the money you have instead of just lots of the money you have. Thanks for a good article that makes sense of 130/30 funds in a clear and concise way.

]]> By: Todd http://advancedpersonalfinance.com/13030-funds-hedge-like-the-big-boys/#comment-26194 Todd Fri, 02 May 2008 16:35:37 +0000 http://advancedpersonalfinance.com/13030-funds-hedge-like-the-big-boys/#comment-26194 Good post and synopsis. I agree these funds aren't great choices for most investors. I think that a lot of "newer" investors try to do the complicated things with their portfolio's because the pro's do. What people fail to realize, initially, is that a lot of "pros" don't get the media attention they deserve, like the state pension funds that using index funds as their core holdings for example. It's also difficult to judge the risk of this type of investment, and people often forget that leverage can magnify the gains and losses. And while we're on the topic of index funds, if you have a free moment check out my post below on some "index" fund wannabe's. http://harvestingdollars.com/2008/05/02/not-all-%e2%80%9cindex-funds-are-the-same/ Good post and synopsis. I agree these funds aren’t great choices for most investors. I think that a lot of “newer” investors try to do the complicated things with their portfolio’s because the pro’s do.

What people fail to realize, initially, is that a lot of “pros” don’t get the media attention they deserve, like the state pension funds that using index funds as their core holdings for example.

It’s also difficult to judge the risk of this type of investment, and people often forget that leverage can magnify the gains and losses.

And while we’re on the topic of index funds, if you have a free moment check out my post below on some “index” fund wannabe’s.

http://harvestingdollars.com/2008/05/02/not-all-%e2%80%9cindex-funds-are-the-same/

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