The Long and Short of it. #1
Someone recently asked, “Can a regular small investor compete with the 'big guys' on Wall Street”? He then asked why I was smiling.
The smile came from many years of observing “big guys” as U.S Exchange floor traders, investment managers and guys in the bar. I spent over 25 years as a member of National Securities Exchanges.
The biggest guys these days are hedge funds. Fees in this sector usually run 2% of assets AND 20% of profits. Big fees. According to USA Today (Jan 8, 2015) their returns for 2014 averaged 2.5% for this sector. The S&P index rose 11.4% for calendar 2014.
Can an individual do better than “big guys”? Absolutely. Requirements, however, are stiff. These include having a plan and committing time to execute that plan. I will write more along this there in the future, so please keep following.
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