Comments on: Myths of Hedge Funds http://livingoffdividends.com/2006/08/05/myths-of-hedge-funds/ Join me on my journey to achieve financial independence through dividends, passive income and investments Thu, 11 Mar 2010 17:23:08 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: mOOm http://livingoffdividends.com/2006/08/05/myths-of-hedge-funds/comment-page-1/#comment-291 mOOm Mon, 07 Aug 2006 11:58:00 +0000 http://www.livingoffdividends.com/2006/08/05/myths-of-hedge-funds/#comment-291 Yes, I am one of those people ( a lot of people believe that the rates are going lower in the mid to long term). Yes also inflation is higher now than a few years ago. The Fed will end up cutting rates in the near future and longer term bond yields will likely fall at that point. The fact that the yield curve is inverted shows that the average long-term bond buyer is not concerned about rising inflation and that despite the rising price of oil we are in a deflationary/disinflationary period still. Technological change is rapid and together with global integration of markets is causing wages and output prices to grow slowly. I don't think we will see inflation much higher than this in the next couple of years. If the Kondratieff theory is correct we won't see inflation levels like the 1970s or 80s for another couple of decades. History doesn't have to repeat though...<br/><br/>So, if you had the money would you invest in a hedge fund? Yes, I am one of those people ( a lot of people believe that the rates are going lower in the mid to long term). Yes also inflation is higher now than a few years ago. The Fed will end up cutting rates in the near future and longer term bond yields will likely fall at that point. The fact that the yield curve is inverted shows that the average long-term bond buyer is not concerned about rising inflation and that despite the rising price of oil we are in a deflationary/disinflationary period still. Technological change is rapid and together with global integration of markets is causing wages and output prices to grow slowly. I don’t think we will see inflation much higher than this in the next couple of years. If the Kondratieff theory is correct we won’t see inflation levels like the 1970s or 80s for another couple of decades. History doesn’t have to repeat though…

So, if you had the money would you invest in a hedge fund?

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