But Mutual funds invest people's money is loss-making business such as Stocks, Real estate, worthless giant companies & banks. Mutual funds still believe these investment areas are profitable. But the "Hard fact" is that, it's over for these investment areas. After sometime Mutual funds will shut down and investors will be bankrupt. When people deposit money with Hedge funds and Mutual funds, they do not know where their money is being invested. People/Investors do not question the "source of investments". Only "final results" are sent to investors.
Merck covered up clinical trial data that indicated Vioxx raised the risk of heart related deaths and as a result the medication was approved and brought to the market where it caused numerous unneccessary deaths. Should all drug manufacturers be shut down? A number of years ago a Pharmacist watered down a Chemo drug and numerous people lost their lives because they weren't getting the dose of medication their doctors ordered. Should all Pharmacists have their licenses yanked? A number of years ago a baby food manufacturer watered down apple sauce to boost profits and as a result babies weren't getting the proper nutrition their parents thought they were getting. Should all baby food manufacturers be shut down? The world is full of blood sucking creatures like Madoff and personally, I think that bastard should be strung up by his toe nails and left to rot in hell but that doesn't mean the actions of him, and people like him, should destroy the hedge fund or mutual fund industry because believe it or not, there are plenty of hedge fund managers out there who have very high morals and care a great deal about their investors. It's a simple fact of life -- some people are just criminals but the result of their actions should not destroy the careers of those who do it right. They should spend an incredibly long time in prison and actions should be taken to minimize the chances that another Madoff doesn't happen but shutting down the entire industry is NOT an option.
Absolutely untrue. In fact, business is going to be great for those who survive this. Money will always find a home and people with money need a place to put it. The industry will become more regulated and people will become more careful but time has a way of healing all wounds. The HF industry isn't going anywhere.
Stocks, Real estate, worthless giant companies are like an "Ugly baby" who will be liked by it's "Mother only" (mutual funds & hedge funds). Outside world (70% to 80% working citizens) were never interested in these investment areas. These people just gave their money to Hedge & Mutual funds with high hopes of average profits. Stocks, Real estate, Worthless giant companies are heading for "another big crash". There is no real money here. It will be over.
There are about 9,000 hedge funds. There are many more investment partnerships. Plenty of them lose money, but you can count the number of actual frauds on one, or at most, two hands. This means that there's a minuscule probability that you're invested in a fraudulent investment partnership. The law you're talking about only applies to fraud, not money lost when there is no fraud. So, I don't think this fraud provision for investors is going to dissuade anyone from forming investment partnerships of any kind. what it should do is to remind people to diversify.
One more reason I don't let anyone trade my money. 1) People should learn to trade. 2) Deposit money with 2+ brokers (not one) 3) Avoid everyone who claims to have amazing abilities to outperform 4) Trade.
4 months back, I had a discussion with a "Big player" and he said to me "We are the ones who move the markets". This "Big Player" is from Saudi Arabia. He has business contacts with Prince of Saudi Arabia. TraderZones, I hope you understood what I mean to say.
Even though I take exception to the high fees that a lot of the mediocre ones charge, mutual funds and hedge funds have, on average and over the long term, been very profitable; and the vast majority are not frauds. The facts seem to contradict your blanket statements very strongly.