It's clear to see that the investing landscape is biased against the ordinary individual investor. There are investment options available to institutional and accredited high net worth individual investors that are not available to the ordinary individual. They can invest in hedge funds, private equity, and venture capital and have an edge in the stock and bond markets due to their advantages in access to information and technology.
The typical individual investor is limited to investing in:
- Individual stocks or bonds that come along with trading commissions and other trading costs like wide bid/ask spreads and company specific risk.
- ETF's or index tracking mutual funds that are subject to the sometimes extreme volatility of the stock market.
- Actively managed mutual funds whose managers take a fat fee off the top in addition to being exposed to the same market volatility (the average actively managed mutual fund returns LESS than the market).
- Bank savings accounts or CD's which are failing miserably at even keeping up with inflation.
The goal of this blog is to uncover the best investment opportunities and strategies available to the ordinary individual investor that will offer an attractive return to risk ratio.
No comments:
Post a Comment