FreeMktAdvocate

10 Questions to Ask Your Fund-of-Funds Manager

I'm confused by your focus on fees and your general critique on fund of funds. If they can provide a lower threshold entrance to hedge funds and greater liquidity then aren't you paying them for those options?

Also if those extra fees are lowering performance beyond what you can get elsewhere then don't invest, if you can't then invest. The whole focus on fees is stupid in my opinion.


On Feb 04 02:43 AM constructe wrote:

> How about, "Why do you have a job?". Isn't it silly to leach off
> people who already are being ripped off on mutual and hedge fund
> charges by doubling up on them in their ignorance? Aren't your products
> not really funds but derivatives of derivatives? Don't you think
> if you told customers that they wouldn't invest? So isn't this type
> of product really scammy and people are making inordinate amounts
> of egregious fees off their clients for not doing much?
>
> Isn't it strange how you sell your product as diversification? I
> mean, did you ever read a book on diversification? Did it ever say
> you have to have diversification of diversification to be more safe?
> And what exactly do you do all day?

Let's Just Say It: Print More Money

You are arrogantly assuming that all of our problems are purely a monetary phenomenon. What's happening now is a massive downturn in a business cycle and all you monetarists who think that massive money injections will cure a downturn in a business cycle is just plain ignorant.

Is Inflation Dead?

"Is it possible there can be a deflationary economic expansion? It has never happened before."

This research paper from the Fed of Minneapolis seems to show that not all historic episodes of deflation are correlated with negative growth and definitely not depression. Curious on your thoughts...

ideas.repec.org/a/aea/...

Double Short ProShares ETFs

The double inverse track the double inverse of the DAILY price movements of the inverse. In the case of SRS it tracks the double inverse movement of IYR (The Dow Jones US Real Estate Index). The important thing to remember is that the fund is born and dies every day and does not correspond to price points with IYR. I.e. if one day IYR was at 100 and SRS at 200 then another day when IYR approaches 100 SRS could be at $150. The fact that a % down has more of a negative effect than a % up, SRS will tend to trade downward over time. Accepting this fact then you find that the leverage on this ETF actually works AGAINST you over time and should therefore be avoided unless you think there will be a sustained downward trend in IYR.


On Sep 19 02:38 PM mamie wrote:

> if you find out anything please let mo no
>
>
> On Aug 24 10:14 PM johnthebear wrote:
>
> > CAN ANYONE EXPLAIN HOW THE DOUBLE SHORT ETF BY PROSHARES WORKS?
> IS
> > IT SAFE? I OWN FXP AND SRS, BUT IT KIND OF SCARES ME.
> >

Krugman's Capital Injection Scheme: Nice Idea, Won't Fix Problem

Huh? The problem isn't capital it's liquidity? If that were the case then why didn't lowering interest rates to 2% fix the problem? Why did the bailout of Fannie, Freddie, AIG, Bear, et all occur? They collapsed due to massive capital needs that they weren't able to provide, not due to lack of financing. And although there is stress in inter-bank rates there is still financing available, albeit at higher rates. The problem with banks is solvency, not liquidity. This is why none of the Fed's measures have worked and why they are now resorting to massive capital injections by buying up the bank's bad assets.