Wall street runs counter-intuitive to everything we’ve ever known. There isn’t much wisdom on Wall Street, save for the fact that Wall Street knows nothing, even when it knows everything.
That’s the difficulty with the modern Wall Street, in the short-term it is as much of a casino as it is a sound investment, but in the long-term, things usually clear up. We don’t know the fair value of a stock, bond, or commodity until well after we have invested, or until news is priced into the market.
When everyone believes it, it stops becoming true
Investors aren’t willing to risk a repeat of 2008-2009. But rather than pile into fixed-income assets or take risk off the table, it looks like investors are going for the noncorrelated assets to boost returns while minimizing their market exposure.
It looks to be a pretty good deal: investors get to buy into investments that haven’t always been so profitable, and they get to feel as though their investment is safe.
A bubble of massive proportions
Hedge Funds, Investing