Hedge Funds Predict U.S. Recession In 2008
Hedge fund managers are predicting that the U.S. economy will enter into a recession next year, according to a Reuters article released last night. Rothstein Kass, an auditing and tax services provider, sponsored the survey which consisted of 239 hedge fund principals with a median $492 million in assets under management.
More than 61% of respondents said they believed a recession was “very likely” in 2008. 87% percent predicted that market volatility would continue or increase for the remainder of 2007. Not surprisingly, only 17% of those surveyed said an economic downturn would be bad news for their operations, with 66% suggesting that a recession would actually bring about investment opportunities.
The Wall Street Journal reported back on September 11 that hedge funds lost 1.3% last month, which was their worst performance since May 2006 and the first losing month this year, according to Hedge Fund Research Inc., a Chicago hedge-fund research firm. Funds of funds, or funds that invest in other hedge funds, did even worse, losing 2.1% in August.
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November 2nd, 2007 at 12:25 am
The extreme liquidity of the currency market, and the multitude of opportunities for large profits, makes it hard to resist for the advanced trader. With such potential, however, comes significant risk, and traders should get familiar with methods of risk management.
ForexCTAs
November 2nd, 2007 at 9:10 am
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