Every investor gets into the stock markets with the hope of reaping big and in the shortest time possible. Inexperience and ignorance of the current trends, however, seems to always stand in their way. According to Gareth Henry, an actuarial science graduate from the University Of Heriot-Watt Of Edinburgh in Scotland, these investors often get into bond and equity. Visit everybodywiki.com
The current economic trends across the globe have long shifted. Bonds and equity, though key players in the stock markets, no longer offer as much in returns in investment as they did years ago. Gareth, therefore, encourages these investors to focus their attention on the more dynamic hedge funds because of their diversified portfolios.
Why hedge funds
Gareth Henry appreciates that no investment is 100% risk-proof. Hedge funds, however, offer investors more options for the diversification of their investments with different return variations. The diversified portfolio, therefore, cautions an investor against huge losses as it is unlike for all their investment portfolios to crash at the same time.
Unlike bonds and equities, hedge funds have the flexibility to perform better in both bearish and bullish markets. Gareth Henry notes that most of these alternative investment firms are run by seasoned investors that understand how to take advantage of either market conditions either for short and long terms.
The experienced trader is also of the opinion that stock and bonds portfolios follow a predictable pattern thus making. This makes less exposed to market volatility. Hedge funds, on the other hand, thrive in more volatile markets.
The contrast, in this case, lies in the fact that while the predictability of the traditional makes them more secure, the volatility in the hedge funds raises the possible returns on investments to levels that bonds may never hit even in the most favorable market conditions.
More about Gareth Henry
Gareth started his finance career at Schroders Investment Firm in 2000 where he worked as the Director of Strategic Solutions. He worked here for seven years before joining Fortress Investment Group in 2007. At Fortress, Gareth is tasked with marketing the investment firm in the Middle East, Europ, and the United States.