Monday, May 7, 2012

5/7/2012 - Hedge Funds Betting Against the Eurozone: Why You Should Worry

Some of the world's most prominent hedge fund managers are betting against the eurozone -- and not just the peripheral countries everyone knows are in trouble. They're taking positions against the core countries, economies that -- until now -- everyone has assumed were rock-solid.

Here's a primer on the world of hedge funds and why the latest developments in the recently resurgent eurozone crisis are yet another warning shot across America's economic bow.

How the Other Percent Invests

Put simply, hedge funds are investment funds for the wealthy. You and I put our money into mutual funds, which a fund manager watches over, moving investor money into and out of a portfolio of stocks, bonds, and other investment vehicles as he or she sees fit in order to maximize the fund's return.

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