http://news.yahoo.com/paulson-loses-mor ... 51444.html
It's worrying when one of the world's 5 biggest hedge funds (which isn't a trend follower, btw!) takes a hit like this...
Jeff
Paulson loses more in September, fund now off 47 percent
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
Why is it worrying? If he is losing others are winning surely?
True, but if some of the best traders on earth have made that kind of loss, you have to wonder how safe anyone's money is right now.
You're right in your observation that trading is a sum zero game. However, if we get a repeat of the crash of 1929, 2008 will look like a walk in the park. And when an ultra-conservative guy like Mervyn King, who's not exactly known for Jim Cramer-like hyperbole, says that this could be the worst crisis ever, you know things are serious...
Even Goldman Sachs is going through difficulties - http://www.telegraph.co.uk/finance/news ... Sachs.html. When the sharks begin to look malnourished, you know something's gone wrong somewhere in the financial ecosystem...
However, I'd be willing to bet that the leading trend following funds are doing very nicely right now!
Jeff
You're right in your observation that trading is a sum zero game. However, if we get a repeat of the crash of 1929, 2008 will look like a walk in the park. And when an ultra-conservative guy like Mervyn King, who's not exactly known for Jim Cramer-like hyperbole, says that this could be the worst crisis ever, you know things are serious...
Even Goldman Sachs is going through difficulties - http://www.telegraph.co.uk/finance/news ... Sachs.html. When the sharks begin to look malnourished, you know something's gone wrong somewhere in the financial ecosystem...
However, I'd be willing to bet that the leading trend following funds are doing very nicely right now!
Jeff
andyfuller wrote:Why is it worrying? If he is losing others are winning surely?
