saloon

An investor strides into the Hedge Fund Saloon and walks up to the bar. The bartender asks “What’ll you have?” The investor replies “Some of that alpha,” so the bartender reaches back for a bottle. Before pouring the bartender says, “this is volatile, but I hear that you feel really good after a while” and pours for the investor, who proceeds to take a full drink and spits it out. “This isn’t alpha, it’s a trend follower. When there are no trends I get killed

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stock

If you could purchase an apartment building today that produced a cash flow after all expenses of 8% a year, you might be pleased with your cash on cash return in the current interest rate environment. If you financed your property with a 50% mortgage which had an interest rate of 4%, you could purchase two apartments for the same equity

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climb

Markets have historically had psychological booms and busts since the beginning of time. The fear/greed syndrome will continue to drive investors into making emotional decisions at the wrong time. Human nature will remain the same. Mania has always gripped the markets from season to season. Gold, tulip bulbs, real estate, tech, oil. Bubbles tend to develop, and while “bubbles” can continue a lot longer than predicted, they will all come to a very unpleasant ending

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