justcurious

50% Returns, No Risk?

Derivatives are not necessarily a problem. Even a plain vanilla currency forward or stock future is considered a derivative. These could just be used for reasons related to liquidity, or just to hedge the FX risk.


On Jan 09 09:04 PM bigmoney wrote:

> the no-thinking approach might be 1/2 cash, 1/2 investments, where
> the latter is stocks & bonds. That fence-sits both inflation
> and deflation.
>
> I work for a mega corp, and our 401k choices leave alot to be desired.
> They are proprietary black-boxes, with high fees. There is one
> S&P500 index, and a global bond index (whatever that is) with
> low fees, and everything else is 1%+. And if you crack open the
> Statement of Offerings, the funds typically have the disclaimer "may
> use derivatives". Even Conservative Fixed Income says something
> about derivatives.