Anyone who thinks that money is earned on the stock exchange, is subject to a mistake joke absolute return funds who believes that money is earned on the stock exchange, is subject to a mistake: the stock market is only a virtual mirror image of the real economy, which in itself creates no value and can therefore also make no money. Educate yourself with thoughts from Julian Brown. On the stock market, therefore earned no money, but only money against goods exchanged. Nevertheless, some people have more money than before at the end of the day. This is in the best case with their skill, better appreciate the value of exchanged goods as a business partner. This in turn has lost exactly same value, what the other has. ERGO: it was considering all areas achieved no value and thus also no money.
Real value added is always and exclusively about the real economy. Contrary to this understanding right dogma, assets managed institutions have tried in recent years to create new realities. The result: Absolute return. Or in other words: in each possible stock market investors can increase their wealth. A breakthrough in the asset management seemed successful.
By introducing the concepts of absolute return not only new investors could be tapped because those, which can get no losses at all and is my experience the majority who could investment management for medium and small capacity henceforth (from the point of view of the Bank), low-cost standard Fund. Stupid only that this breakthrough has already emphasized at the first stress test as a fallacy. While it is possible to increase their own wealth through clever Exchange even in difficult and bad times. But still same amount of losers left. Because this is so, no one or only too few, which take a bet against the winner can be found in extreme times. But exactly this is the prerequisite for the success of the absolute return funds: the Manager must find someone who is more stupid. The more investment capital on this wave rides, the harder it is to find these losers. In times where the stock market knows only one way, this is even almost impossible. Conclusion: The most absolute return funds is moving on a hair-raising level. Some industry leaders were forced to close at all. The idea is that, thank God, dead. I know regret it for either the Manager or the investors. “The Anglo-Saxon saying there is no such thing as free lunch!” is not new. Who wants an above-average return, must be willing to take above-average risks. All the others are better served with U.S. Treasury bonds.