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Oct 19 2012

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Hedge Funds: Luxury Prices For Lousy Investments





People who are rich enough to be deemed “accredited investors” qualify to wade into hedge fund waters.  

These are investment products deemed superior, mostly by myth, rather than by reality. If you aren’t wealthy enough to swim in these waters, count yourself lucky.  

As I detailed in my latest Canadian Business magazine article, the joke is on the big fish who swallow these worms. 

Read the Canadian Business Magazine article








About the author

andrew hallam

I'm a freelance finance writer, lucky enough to have been nominated as a finalist for two Canadian National Publishing Awards. I'm also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School, a book explaining how I became a millionaire on a teacher's salary, while still in my 30s. Working to empower people financially, I'm available to motivate and inspire people on basic retirement planning and index investing. I'm happy to comment on your questions, first, please read the Terms of Use.

Permanent link to this article: http://andrewhallam.com/2012/10/hedge-funds-luxury-prices-for-lousy-investments/

4 comments

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  1. avatar
    Loydis

    Hi Andrew,

    I have been investing in index funds for the last 10 years. I am lucky to be investing in the ultra low cost TSP offered by the federal government.

    I purchased a copy of your excellent book. My only regret is that I didn't start investing sooner. You are officially one of my investing mentors.

    Cheers,

    Loydis

    1. avatar
      Andrew Hallam

      I'm honored Loydis. Thank you!

  2. avatar
    E

    Andrew, should the DOW being at an all time high make me want to move some of my assets over from the stock indexes to protect the recent gains? possibly weighting the bond index funds more heavily? or doesnt matter?

    1. avatar
      Andrew Hallam

      Hi E,

      The level of any stock (or the Dow itself) should be relative to the earnings of the company (or in the case of the Dow, the companies). The U.S. market's price to earnings ratio, based on the Dow, is currently cheaper than it was for the latter half of the 1990s, and cheaper than most of the past decade as well, with exceptions being 2003 and 2008, and for a short while in 2010. Please don't get fooled by journalists into not thinking of the market as a representation of the businesses within it.

      Cheers,

      Andrew

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