The Online Investing AI Blog

This article on Yahoo finance really got my attention. It’s about how the state of Connecticut is about to run out of money. It’s interesting because many states are in dire financial straits, but most people are, as usual, blissfully unaware.

Recently I did some research about bonds, and was interested in purchasing some. I discovered that municipal funds are supposed to be among the safest bonds that you can buy! I thought, “Isn’t that funny. Many states and cities are going bankrupt, but people think these bonds are very safe.” It sounds like the same game the ratings companies have been playing for decades: give the bond a AAA rating even if it is risky.

Why are municipal bonds more risky in this financial environment?

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Money, US Economy aaa, bailout, bankruptcy, bonds, California, chaos, Connecticut, debt, Money, problem, ratings, spending

As we’ve seen this week, technology and strategy have combined to give the power of hedge fund managers to self-directed investors. Automated Trading can give investors continual access to the market; trend following offers an easy-to-maintain strategy.

Hedge fund managers, though, have access to so many more markets, right? They can trade more than just stocks and bonds.

Now, thanks to aggressive online brokers who are eager to expand their offerings, individual investors now can trade all types of assets. It’s pretty safe to say that if a hedge fund can trade it, so can you.

This gives you another took of a hedge fund manager: diversification.

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Accelerating Technology, Automated Trading, Business Strategy, Investing, Money, Online Investing AI, US Economy Automated Trading, bonds, diversification, etf, ETFs, hedge fund, manager, stocks, trend following