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Strategies & Market Trends : Moomin Valley (formerly Troll-free Zone) -- Ignore unavailable to you. Want to Upgrade?


To: RealMuLan who wrote (1372)7/25/2006 9:04:14 PM
From: Moominoid  Read Replies (1) | Respond to of 2852
 
What Quantum did evolved over time. The 1990s (pound in 1992) were pretty late in the game. Druckenmiller suffered losses in tech stocks in 2000 and Soros fired him. Then they reorganized the fund to be more conservative. I wouldn't say it was luck but their "model" didn't work as well anymore and the fund had gotten too big. The same happens to mutual funds and why the good ones shut to new investors. Same for hedge funds.

Compared to 2000, 2001, 2002 the volatility in the markets is very little now. There were some 10% days then! (and not just down!). But I don't want to trade individual stocks - the index feels much safer. Main risk to my model is from an unexpected event like a terrorist attack. That's why leverage needs to be somewhat limited.