Hedge Fund Manager Gives Advice to Those Thinking About Trading Stocks on RobinHood - Politicrossing
Connect with us

Business

Hedge Fund Manager Gives Advice to Those Thinking About Trading Stocks on RobinHood

“There are three levels when it comes to this: Investing, Speculating, and Gambling.”

Published

on

Robin Hood, GameStop, and hedge funds are all in the news lately, aren’t they? People have made millions and hedge funds have lost billions and the question for many people is, can I still get in the game?

PolitiCrossing reached out to Joel Block of BullsEye Capital, a California-based hedge fund manager and Venture Capitalist and asked him what he thinks about all of this and whether or not the “little guy” should get involved.

He says that when you are dealing with stocks, there are three levels when it comes to this: Investing, speculating, and gambling. He makes a pretty compelling argument that this specific instance is gambling and how the little guy is going to be left holding the bag. Check it out and comment below about what you think of the video:

Joel Block is a futurist and longtime venture capitalist/hedge fund manager (gobbledygook for professional investor) who lives in a Shark Tank world like on TV. Since selling his publishing company to a Fortune 500, Joel’s keynotes expose Wall Street insights and the inside track on high-velocity innovation for better, faster, and smarter profits – empowering business executives and their teams to “Disrupt Their Competitors’ Future.” He can be found at BullseyeCap.com.

More about Hedge funds from Wikipedia:

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing except to institutional investors, high net worth individuals and others who are considered sufficiently sophisticated.

Hedge funds are regarded as alternative investments. Their ability to make more extensive use of leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, such as mutual funds and ETFs. They are also considered distinct from private-equity funds and other similar closed-end funds, as hedge funds generally invest in relatively liquid assets and are generally open-ended, meaning that they allow investors to invest and withdraw capital periodically based on the fund’s net asset value, whereas private-equity funds generally invest in illiquid assets and only return capital after a number of years. However, other than a fund’s regulatory status there are no formal or fixed definitions of fund types, and so there are different views of what can constitute a “hedge fund.”

Although hedge funds are not subject to many restrictions that apply to regulated funds, regulations were passed in the United States and Europe following the financial crisis of 2007–2008 with the intention of increasing government oversight of hedge funds and eliminating certain regulatory gaps.

Although most modern hedge funds are able to employ a wide variety of financial instruments and risk management techniques, they can be very different from each other with respect to their strategies, risks, volatility and expected return profile. It is common for hedge fund investment strategies to aim to achieve a positive return on investment regardless of whether markets are rising or falling (“absolute return”). Although hedge funds can be considered risky investments, the expected returns of some hedge fund strategies are less volatile than those of retail funds with high exposure to stock markets, because of the use of hedging techniques.

A hedge fund typically pays its investment manager a management fee (for example, 2% (annualized) of the net asset value of the fund), and a performance fee (for example, 20% of the increase in the fund’s net asset value during a year).

Hedge funds have existed for many decades, and have become increasingly popular. They have now grown to be a substantial fraction of the asset management industry, with assets totaling around $3.2 trillion as of 2018. Some hedge fund managers had several billion dollars of assets under management.

We'd love to hear your thoughts about this article. Please take a minute to share them in the comment section by clicking here. Or carry the conversation over on your favorite social network by clicking one of the share buttons below.


Chris is one of the World's Top 50 Speakers, member of the Motivational Speakers Hall of Fame, and one of Inc. Magazine's Top 100 Leadership Speakers. He considers it a privilege to be able to speak to people, help them lead successful lives, become extraordinary leaders and, masterful salespeople. Chris has authored twenty books with three million copies in print in 13 languages and over 450 articles on success, leadership, sales and motivation.



  • This field is for validation purposes and should be left unchanged.
 
 
 

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. Thank you for partnering with us to maintain fruitful conversation.



Business

Hey Liz Cheney, And Other RINOs, Here’s the Truth!

Liz Cheney and RINOs are out of their minds to believe that Trump hurt the party!

Published

on

RINOs like Liz Cheney and others constantly make the argument that Donald Trump has broken the Republican Party and driven people out of the party. But that is so far from the truth it’s incomprehensible that they even say it. PolitiCrossing founder, Chris Widener, one of the world’s top motivational speakers, makes the case against them in his brand new video. Check it out below and then let us know what you think!

Trending on PolitiCrossing.com: The Treasonous Duo: Barack Obama and Joe Biden

Continue Reading

Business

0 to 60 vs Cruising Speed + Hiring guidelines

Published

on

Everywhere you look today there are “Help Wanted” signs. But lately not enough people are willing to go back to work. Maybe it is time to rethink who we are seeking for our workforce. Are you looking for high-velocity jackrabbits or proven achievers? Drag racers or Cruiser Class?

I grew up in the automobile era. As a baby boomer I remember that everything cool was about cars (or motorcycles). If you had a good car, you just had to customize it to express your own personality. My first car (in 1963) was a 1950 Plymouth Special Deluxe four door. It’s factory color was tan and it had a 97 horsepower flat-head six-cylinder engine with a standard shift on the steering column. “Three on the Tree.”

As a teenager I was thrilled to have my own car but disgusted with how un-cool it looked. To make matters worse the floorboards were rusted through and the driver’s door had been heavily dented in a collision. But it was mine! I spent weeks on end in the driveway with Dad replacing the old parts and renewing the car. We painted it “midnight metallic blue”, reupholstered the interior in “Naugahyde” (leather-like vinyl) and put cool hubcaps on it. I got a Corvette shift knob to put onto the column shift lever and added a boastful warning sign to the dashboard: “Do not exceed speeds of over 100 miles per hour for more than five hours under normal conditions.” (Remember now, I was a teenager and had no idea how dumb that seemed.)

I named the car “The Heap” and painted a 3 inch square cartoon of a wrecked car just under its name “The Heap” on my left front fender. (Again, you’ve got to remember, this was a time when we thought it was cool to roll up your T-shirt sleeves, grease your hair, roll up your jeans to show off your white socks and hang a cigarette cynically out of your mouth.)

The engine was very old technology and it had barely enough horsepower to ascend all the hilly streets in western Little Rock, Arkansas. It burned about as much oil as gas too. I’d almost always have to add a quart of oil with each fill up. Luckily prices were comparatively low. Now for the important metric: its speed from a standing start up to sixty miles per hour, known as “zero to sixty”. That was the prime measure of a car’s power and competitive potential. “Take Off” was where the power was measured. Above 60mph is considered “Cruising Speed” and is much more efficient and enjoyable, but take off is where the noise is made, tires are worn out and fuel gets burned up fast. The same is true for an aircraft; its fuel is often used up more for takeoff than for the rest of the journey.

Those were the days of drag racing. (See the James Dean movie “Rebel without a Cause” for details. Or read old copies of the #1 auto magazine of the day “Hot Rod”.) Well, my old heap would barely do sixty on the same day that the race started so it didn’t see any competitive action. But it looked cool to me!

Now, are you ready for the big segue? Stay with me. Here it comes. In the 1960s cars that could cover a quarter mile in under 20 seconds and could go zero to sixty in under 10 seconds were considered fast. My buddy Jimmy Stevens had a car that would do 0 to 60 in 6.4 seconds, and I remember dragsters that did a quarter mile in 9 seconds from a standing start! Today those numbers are considered mild. If you wanted to impress someone you’d spin your tires and race through the gears up to about sixty miles per hour.

But there is another category where the 0 to 60 measure often applies with equal levels of prejudice, (Here comes the transition…..) Age.

In the past people who were between zero and sixty years old were considered good investments and those over sixty were “old.” Nobody took 61+ people’s advice or considered them to be in touch with the real world anymore. Remember the hippie slogan “Never trust anyone over thirty”? Well today those 78 million Baby Boomers are turning 70+ at the rate of tens of thousands every single day! Including me. I was born on the first year of the boom, 1946, and graduated high school in its last year, 1964.

Along with this demographic shift there is a corresponding economic shift. We have seen the youth of the baby boom become the leaders of the world. George W. Bush, Bill Clinton, Donald Trump and I were all born in 1946. Joe Biden is older by about 4 years. Paul McCartney is just a bit older than me. Bill Gates is younger. Hillary is about my age and Barack Obama is younger. But the vast majority of our nation’s wealth and power is vested in people who are no longer between zero and sixty.

Today the reframing of life to include 60 to 100 is an important consideration.

Highly functional life expectancy is now well above 75 and some folks are still productive well into their 80s. If you reach “retirement” age and still have 20+ years of viable life ahead, you start looking for your next career. No more do we simply seek a part time job to supplement our pension. Today people are seeking bold new challenges and reasons to stay active and involved. Check the findings of Age Wave and its founder Ken Dychtwald. We will see tens of thousands of former retirees re-entering the workforce with vigor in the coming years. So, if you’re hiring, you might want to ask some impressive seniors for business advice and see if they fit with your vision and goals. A bonus is that these folks have an abundance of Common Sense. They don’t buy into the woke mentality or implied guilt and stain of sins committed before they were born.

The one thing that keeps life and health intact is Purpose.

We all need a challenge that is bigger than we are so that we can keep on growing. We need a sense of purpose in what we do. We must find meaning in our life and feel that we are truly necessary. This is much greater than just getting a secondary job. It is also important to recognize that once you’ve traveled the career path once you don’t have the same patience with wasted efforts during the second trip. Spending energy and time on things that don’t hold much value is seen as a waste and we quickly get bored and curious about new challenges. What we put up with in order to “pay our dues” the first time, we find to be depressingly meaningless on the second trip.

We want our efforts to matter and we want our voices to be heard. Challenge, contribution and meaning will be vital factors in Cruiser Class second careers. And there will be lots of job-hopping experimentation. We’ll be trying on second careers like new coats. If the fit isn’t near perfect, then we start searching again.

These Cruiser Class workers can be great assets. They have experience, maturity, wisdom, patience and insight that you would never find in their younger counterparts. They can truly advance your business and serve your community as well. Your existing structures and policies might need amendment though. They insist on having meaningful and fulfilling lives with plenty of extra time for the grandkids and their latest adventures. They want to enjoy life while making a difference.

So, don’t let the lure of GenX, GenY or Millenials occupy all of your attention. There is a sea of talent out there seeking to recommit to productivity. Let’s all put on our thinking caps and restructure our working world to make room for the Cruiser Class. Maybe the Hare should take a day off and watch the Tortoise show some wisdom.

Continue Reading

Our Newsletter

Become a Politicrossing insider: Sign up for our free email newsletter, and we'll make sure to keep you in the loop.

Sites We Like

Our Newsletter

Become a PolitiCrossing insider: Sign up for our free email newsletter, and we'll make sure to keep you in the loop.

Trending

Politicrossing
 
Send this to a friend