Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Been doing some research and things are not rosy in the Wealth Management business.  I was under the impression US Venture Capitalists had their stuff together.  For the top firms, that's true.  For the majority of firms, not so much.

In May 2012 the Kauffman Foundation released a study on actual market performance of Venture Capital Funds.  The report, We Have Met the Enemy ... And He is Us, "a comprehensive analysis of the Kauffman Foundation's more than 20 years of experience investing in nearly 100 VC funds."  The finding isn't pretty:  

... the Limited Partner investment model is broken.

and Kauffman would have done better to invest their money in the Russell 2000 index of small-cap stocks.

Several reasons for this, the most important one is the General Partners (GP) of the fund are in the business of raising money and collecting management fees.  How well a GP manages the investments isn't in the picture.  

Which is weird but there it is.

I doubt the average Chinese wealth manager is any better than their American counterpart.  Lemming-like behavior is a well known property of the US investment markets thus I am confident it's a property of the PRC's investment markets too.  Some proof lies in the reports China has entire cities with houses, apartments, stores, etc. 100% purchased, as an "investment," and ~100% unpopulated.

This diary also provides a bit of evidence for something I've been thinking for some time: the world is awash in cash, most of it deployed and/or locked into economically useless fol-de-rol.  

If so, cannot one start to seriously question, and examine, the Pop idea:

cash = wealth

?

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Thu Jun 20th, 2013 at 11:07:02 AM EST
ATinNM:
the world is awash in cash, most of it deployed and/or locked into economically useless fol-de-rol.

exactly... hoarding fertiliser when the fields need it, trying to squeeze oil out of seabeds when we could grow it, etc etc.

my shed is bigger than yours, my rig taller, sigh.

they love money so much they're choking it to death by clutching onto it so hard.

suffocating their very own golden goose with greed

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Fri Jun 21st, 2013 at 09:46:53 AM EST
[ Parent ]

Display: