Market Insider

 Intro Hedge Funds, the talk of the modern financial scene. In this post, we will unpack what Hedge Funds are, what strategies they employ, and how they can affect the economy and private investors. General Information Hedge funds are private investment institutions that invest capital from high-net-worth clients across many asset classes to generate profits. The goal of a hedge fund is to generate high returns for high-income clients through aggressive investment strategies, while also highly compensating the fund's managers. Managers of the Hedge Fund can be compensated in accordance with the 2 and 20 rule, meaning they receive 2% of assets under management and 20% of profits. Hedge funds influence the economy by setting a standard for risk management for investors seeking to balance “hedging” against risks and generate high returns. In addition, Hedge funds are less regulated than other financial institutions, enabling them to pursue high returns, but also contributing to volati...

Intro Market Bubbles. A pretty intimidating and scary economic phenomenon that is masked by possible ignorance and excitement. In this edition of Market Insider, we will discuss what Market Bubbles are and how you can protect yourself against potential losses. What is a Market Bubble? Market Bubbles are periods of time when asset prices rise to an unsustainable level, fueled by speculative trading and euphoria in a specific industry or sector, which eventually leads to a "pop" or a crash when the euphoria subsides. What starts as an "undervalued" sector that grabs investors' attention turns into an over-bloated behemoth of an industry whose foundation was built with euphoria and irrationality. When investors discover said industry and deem it "undervalued," investors pile in (large institutional and private investors alike), growing the sector seemingly exponentially, backed not by profit or demand for products (actual value of assets) but by an expect...