SANTA MONICA, Calif. (MarketWatch) -- An investment club comprised of super-rich members is moving away from public equities and into alternative investments. http://www.marketwatch.com/news/sto...x?guid={F00F3A4C-A703-4E78-A094-DDB41C113A0F}
These people are idiots, IMO (I'm sure they care what I think). They may be right in seeking out alternative investments to equities, but those they cite in the article are anything but less risky.
A good contrarian indicator that hedge funds, buyout funds, and value added real estate (a la Blackrock) have peaked.
Must be inherited money. What they consider "alternative" are just illiquid black boxes full of more stocks, and they won't figure it out till it blows up.
Wow I dont understand them. They are concerned with capital preservation, and they are willing to live off of 3% of their assets. So why the hell don't they put all their money into MMA's and Tbills?? They'd be getting 5.5% return without risk. Geez.
That would ASSume the real inflation rate was lower. Sorry, its not. It would also ASSume our government can pay its cebts. Sorry, it can't. The only way it pays its debts is to print more money to pay it with. And that in turn causes more inflation.