Hedge Funds Regulation

More hedge funds are now subject to SEC regulations. However, regulate them too severely, and they will no longer be considered hedge funds in the true sense. Not by the definition of what an investment hedge fund tries to do.

                       

Their managers need secrecy in order to trade. If they divulge their intentions in advance, as stricter regulations promote, their efforts and objectives are

neutralized. Other investors will be able to counter strategy, to make any proposed hedging worthless or even dangerous.

                       

Moreover, hedge fund activity had little to do with the financial downturn of 2008. Over- regulation is another instance of the Obama administration’s jousting at windmills for no real purpose, other than catering to its anti- business, constituency.

                       

Moreover, “family” funds have managed to escape government tentacles with obvious political ability.(See the Earl J. Weinreb NewsHole® comments and

@BusinessNewshole at Twitter.)

Derivatives Investments

                

Politicians love to point to derivatives as bad, and a major cause of our past financial distress. But derivatives perform an important function as a financial instrument.

                       

Timothy Geithner, the former Secretary of the Treasury, overlooked meetings, monitoring trading of derivatives, when he headed the New York Federal Reserve. So, the mysterious workings of derivatives should not have been so foreboding, dangerous, and deadly, supposedly causing the 2008 financial meltdown. And they didn’t warrant the notoriety they received.

                       

Derivatives trading now have tougher regulations. I can see having more transparency, but derivatives make financing cheaper in the long run.(See the Earl J Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Insurance-Selling Estate Planners

                   

Be careful about buying life insurance from estate planners. It is the job of most of them to sell life policies. They sell other financial products as well; various types of annuities and mutual funds. But their options are limited and your’s become restricted.

                       

They know their products, but they have a conflict of interest, particularly should they be tied to one life insurance company.

                       

When they are selling mutual funds, you are probably not getting the lowest cost selections. The latter have to be higher cost to warrant compensation for salesmen. Lower cost mutual funds are essential to your benefit, no matter what the sales pitch may be on past or future “performance.”

                       

If you need substantial estate advice, see a non- salesman accountant or lawyer, specializing in the

field. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

States’ Finances

               

Most of this country’s states have financial trouble. Pension and other poorly undertaken contracts are making it impossible for most to balance their budgets. Any spending cuts have not kept up with demand for state services and outlays.

                       

Yet, legislators keep handing out promises and largess. School costs keep growing. Public service and government-worker union pressures are destructive for officials seeking budget solutions.

                       

Unionized employees often get 70% or more of their income for retirement each year, after only thirty years or less of work.

                       

Chicanery, legal or not, is also rampant. Many government pensions are permitted to be ‘spiked’ upward with overtime pay and raises, before retirement.

                       

Fact: It takes $1 million in capital funds at 5% to get one retiree $50,000 annual pension each year. And that 5% is not being easily achieved these days.

                       

Bankruptcy to break pension contracts is not an option for states, without federal law changes, but maybe for cities and towns. There will have to be some change in contracts for individual solutions.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Investing in Gold

The market for gold as coins and bullion has been going well on average, over the years, thanks to the weakening purchasing power of the dollar over the decades. I have frequently commented on this because I feel gold can be speculative for most folks who have no idea about its downside.

                       

It can fall sharply, with any attempts to balance the U. S. budget, which will have to be done. And gold does not earn income or revenues upon which to establish intrinsic value.

                       

In bad times, it’s a psychological defense weapon in many ways.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

   

Poor Business Experience of Securities Analysts

Securities analysts give you investment advice. They suggest what securities to buy and sell. Analysts constantly critique management of publicly owned companies. They claim to know what products and services companies ought to produce and what they should charge. Analysts propose when to hire and fire top executives.

                       

Yet very few analysts have hands-on ability to understand how any business operates from the inside. They are not even that proficient concerning Wall Street inner activity. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Media Investing Ideas

                     

Whenever the financial media discusses investment strategies, it’s about a favorite of someone being interviewed or reviewed. Perhaps the strategy is a public relations release, disguised as financial news.

                       

Investigations I have done of literally thousands of

independent strategy studies and investing techniques, have helped me delve into the investment strategy phenomenon.

                       

My conclusions often differ with that of the media, which tend to overlook strict techniques. So efficient strategies get short shrift. Yet, proper strategy use increases odds of investing success.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)