Trade like the hedge fund gurus

Is it possible to invest exactly like the best hedge funds in the world? It may be easier than you think: by utilizing Exchange Traded Funds you can play the same positions that those successful hedge funds hold, all that without the high cost and performance bonuses of hedge funds.


Currently there are various ETF's that track the positions of top managers. The Top Guru Holdings Index ETF (Global X) selects 68 hedge funds and subsequently looks at the best ideas for example. Alpha Clone has a similar ETF, the AlphaClone Alternative Alpha ETF. This ETF uses a slightly different methodology with a patented ranking system. Furthermore, this ETF has a dynamic hedge mechanism. AlphaClone shorts are allowed up to 50% during a prolonged decline in the market.

Should Facebook go public or stay private?

The Wall Street Journal recently announced that there is a good possibility that the popular social media website Facebook will go public in 2012. Which means a publicly traded stock. If that's the case I'm going to be one of the first to jump on the bandwagon from a traders perspective. Already my broker Zecco  is adverting on Twitter through a sponsored link to own a small stake of Facebook through $GS. Seems to me they are targeting to investors to own a piece of a pie that hasn't even been baked yet, signaling a already huge demand for the actual stock.
Owning this IPO (Initial Public Offering) at launch is I think something that almost every investor is dreaming of! 

However, there are some advantages and disadvantages for Facebook itself to go public. The number one reason if Facebook will go public (if it does next year) is to raise extra capital, something I don't think they lack of right now and I think could be one of the reasons why they are holding off the thought of going public any sooner. 

On the flip side, it could be that the revenue figures aren't as great as everyone thought.

One of the disadvantages of going public is, and I would like to elaborate on this a little more, is the fact that they would have to open the books, to investors, traders, the competition, to anyone. On top of that there will be a constant pressure from investors to perform. Is that something Facebook wants to do deal with? 

Mark Zuckerberg, founder of Facebook already stated that he doesn't want to deal with the responsibilities of becoming a CEO of a publicly traded company. Facebook is an incredible phenomenon and I enjoy it very much myself and use it daily, no not only for CityVille!. I think it's a wonderful tool to stay in touch with family and friends and make new connections. In other words, it runs pretty well the way it is. 

Making it public could intervene with the 'functionality of the overall system', if you know where I'm getting at. I'm afraid most features on the site won't be free anymore and we will see a lot more banners and other sorts of advertising to raise revenue even further then the previous financial report to make shareholders happy. 

Then again, Facebook is holding a huge amount of personal data from users around the world. By now shouldn't they kind of have the obligation to make their books and intentions public?

Making it public will sure fill the pockets of many investors but will this be such a good idea, or am I over thinking this?

Now that we are on the Facebook topic, why not become a fan of my facebook page!

What do you think? Should Facebook become public or stay private?

Dow Jones worst August since 2001

The Dow Jones Industrial Average had its worst performance since 2001. Take a look at this video clip.

http://c.brightcove.com/services/viewer/federated_f8/1079049304

Investing with money you can't afford to lose...

Many people who are interested in investing but have some sort of unsecured debt, like credit cards, personal loans or medical bills, are eager to jump in the markets. It's a very attractive world when they hear how much money can be made. They hope with the possibility of a high rate of return they quickly can pay back all their debts and live debt free after that.
Wait, you are worried about your credit card bills and you are thinking about investing?

Possibly one of the biggest mistakes you can make. You should use the 'extra' money to make bigger payments on your credit card bills to pay them off quicker. In almost every single book I have read about investing there is a chapter devoted to the number one evil for your wallet: high credit card debt or any other unsecured debt. They write about it like it is Satan himself...and I happen to agree with them. Credit card companies should be outlawed if you ask me.
Credit cards only work when you are able to pay them in full every month and take advantage of the air miles, points or other benefits that come along with it.
Unfortunately that is not always the case, the 'instantly owning money' gratification to pay off other bills or get that item you always wanted right now instead of saving up for it, is what lures many people in to applying  for a credit card.
However, if you make only your minimum monthly payments, unsecured debt essentially bleeds your finances dry over the course of your lifetime. Of course, this depends on how much debt you have and at what interest rate. Calculate how much you have paid in interest so far by having a credit card and you will be unpleasantly surprised. All that money could have been saved or invested. Sure you got a great deal when you first signed up for a credit card, but once you accumulated enough debt on the card to a point where it is difficult to pay back the full balance every month credit card companies pretty much can do whatever they want with you (Yes, even with the new credit card laws that are in effect). They work their way around, in order to make it still a very profitable business for them. After all, shareholders are knocking on their doors to see the quarterly results every time, and that can't be less then what it used to be, right?
Some debt is good. Secured debt, that is: a mortgage, a car loan, etc. Those are things we need in life and are in a sense 'healthy debts'. And some unsecured debts as well, if you can afford to pay off the balances every month.

Depending on your APR and how much credit card debt you owe, it can take up to 40 years or beyond to pay them all off in full! Think how much money you are throwing away paying interest alone! It should be illegal, in my opinion. But there is a solution!
Debt settlement (another word is debt negotiation or debt arbitration)  is an attempt to settle debt with the creditors. There are companies out there that specialize in settling unsecured debt, personal loans and medical bills. Companies like Exodus America. What they do is negotiate the debt with the creditors, which at that point the creditors are more likely to co-operate to settle the debt for less. In the event of bankruptcy no one gets any money. If you have a lot of unsecured debt, and in the short- mid term you don't see you financial situation change or getting worse because of the debt, you may want to consider debt settlement. A better option than bankruptcy, which can go on your credit report for 7 to 10 years.
Example, if you owe $10,000 in debt, they may be able to negotiate it down to $7,000 or less and make the payment into one lump sum, payable over 3 years. Of course each individual case is different, a reason why debt settlement companies do free consultations.
However creditors are likely not willing to negotiate the debt if you make your minimum monthly payments. But if you have fallen behind and late fees, overdraft fees and other charges have accumulated, debt settlement may be a good option for you since they are more likely to work with you.
One company I recommend you should consider settling your debt is Exodus America like I mentioned before. They have debt relief programs available, free consultation and free credit reports. What have you got to lose? Exodus America does debt consolidation and free credit counseling so you can pay off your debt with 3 years for example instead of 40. Think about it. Debt free? Starting over, saving the money you normally would have paid a credit card company? Then you can invest that money, and you can make lots more of it, instead of paying the credit card companies. If you have a lot of unsecured debt and you are having trouble making the payments, don't even consider investing. Rather put the extra money you have and pay off the balance of your credit card. Then come back to trading and investing. Exodus America may be able to help! Really.
Check them out on http://www.exodusamerica.org/