Hedge funds have lost an average of two percent per year for the last five years. Best in class made gross returns of 1 to 4% a year, while passive allocations in the S&P 500 from 2007 to 2012 made zero. Divide these returns by the huge capital risk and volatility that hopeful investors were exposed to in the process and the outcome looks a whole lot worse. Proving yet again: risk at every price is not our friend. Here is a direct link.
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Cory’s Chart Corner
Humans just repeat the same old themes decade after decade. Today there is far more debt to service, thus greater financial impact on spending. Ask Walmart's CEO if he's noticed any change in consumer behavior while the U.S 10 years hits 5%.
Don’t forget in April of 2007 10 year hit 5.3% and by October of 2008 they were 2%.
