Just 11% Of Hedge Funds Beating S&P500

As you know from my blogs including this one and many books, I am not a fan of hedge funds.  To recap - you give trading authorization to someone so that they can gamble with your money.  If they win, they get 20% of the gains.  Wow.

According to Goldman's research to date, just 11% of hedge funds have beat the simple S&P 500.

To date, the S&P 500 is up just about 12% and the average hedge fund is up 4.6%.  I am not sure if that includes their hefty 20% fee for managing your money so wisely :(

To make matters worse, 20% of hedge funds are negative for the year and these are the geniuses that many pension funds trust their money to invest and do well.

Lastly their two biggest holdings are Google and Apple, while that's good, they are both winners, it's most likely they recently bought them and are not and have not been long term holders which doesn't bode well.

What Is #1 For Stockbrokers?

Right now, securities firms don't have to put investors' interests first.  New regulations may change that—and Wall Street isn't happy.....

For those of you who have read my blog or book, this comes as no surprise but for those that haven't, I hope the title is a little shocking.  You can read the entire article here.  

Bottom line is that stockbrokers do not have to put their clients interests first, yes, you read that correctly and is why I have been pounding the table encouraging investors to learn how to invest for themselves.

Its actually quite easy and you'll know that the person who is handling your money is the person who cares about it the most, YOU!