If you wonder how stable the global financial markets are you have to look no further than 3 of the best hedge-fund managers on Wall Street. Carl Icahn, Chris Shumway, & Stanley Druckenmiller are all bailing out of the hedge-fund business. Each one in the last quarter gave back all outside investors holdings, the latter two have left the fund managing business entirely. What does this say for these managers? More importantly, what is it saying about the current markets?
Each one of these guys are some of the best at what they do: make huge sums of cash for those who have huge sums of cash. All three site fatigue & the unstable markets as the reason for divesting from outside investments. Apparently, the pressure is getting to them and they only want the responsibility of there own personal interests. This on the surface is very understandable, but more to the point, maybe discretion is the better part of hedge-fund management. Better to chicken out now than let the market cook their collective goose?
The take-home for you, Joe Investor, buyer beware! Since, some of the brightest & best at the Wall Street game are bailing out then you should also consider your current position in the market. Should the market take another swan dive or a double dip much in the way it did in the 1930’s, the best place you can hedge against the losses would be in the ownership of physical gold & silver. We recommend a conservative 10% to an aggressive 20% of your total net worth invested. These figures should cover any losses incurred just as it has over the last two downturns.
The Canaries of Wall Street are dropping like flies, take their que, strengthen your position with the financial insurance that is your very own tangible asset portfolio.