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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (76794)	9/7/2007 3:44:14 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

It is different for the managers, who pocket the fat fees on profits for a while. But for investors it is a Russian Roulette. The point is, by providing liquidity at critical moments, the Fed effectively removes the bullet from the gun, and that's why such funds have been the best performers for the last 5 years. The bullet gradually becomes a nuke as stellar performance attracts more capital, and I honestly think we are there. My guess is a very large chunk of the trading volume is due to these trades (heard 1/3 of hedge fund capital sits in LTCM-like funds). At some point the Fed is unable to remove the bullet that became a nuke and stop the chain reaction.