The shaky recovery from a dramatic financial collapse is probably not the best time to be starting up an investment business. That doesn’t deter Michael Kane, the co-founder and CEO of hedgeable.com.
Anniversary of Lehman Brothers Crash
A year after the failure of the storied Lehman Brothers Kane advises clients now is a good time to think deeply about managing their hedged portfolios.
He told Reuters (September 16, 2009) that “If the U.S. continues on its current path, it’s the everyday investor who will be affected the most, by a second collapse that could make the Roman Empire seem like small potatoes.”
His company aims to give retail investors tips on trades to “execute in their discount brokerage account.” According to Kane, there’s money to be made even in bear markets.
Which Way Will the Market Go?
Plenty of people and some very big financial corporations got badly burned in the stock market decline that began in October 2007 and apparently bottomed out in March 2009. There are plenty of market watchers who say the worst is not over, just as there a plenty who are gung-ho for big profits in the next few months.
The truth is nobody knows for sure; if they did they would not be working in the financial industry, they’d be relaxing in luxury.
Contest to Find the Most Unfortunate Investors
Kane’s company has launched a contest to find the investor who is prepared to admit she or he took the biggest beating in the market downturn. The company is offering inducements to fess up to being hornswoggled by the clever money manipulators in the investment banks.
As The Economist (September 26, 2009) points out winning the prize might be considered the equivalent of being awarded a Golden Raspberry – known affectionately as Razzies by all except those who received them – which are handed out for truly terrible exploits in the movie industry. Paris Hilton was “named as worst actress, worst supporting actress, and half of the worst screen couple in this year’s Razzies.”
Prizes for Being the Worst Investor
For those who are able to swallow their pride and enter the hedgeable.com contest, entries close on October 12, 2009. But, the prizes are not too shabby:
- First Prize: “An all-expenses-paid vacation for two to Rome, Italy, where they will find similarities between the U.S.’s current economic situation and the Roman Empire’s collapse due to leverage, taxes, a de-valued currency, and massive debt.”
- Second Prize: Two lucky people get to go Iceland, where monumentally gross mismanagement of the country’s banks led to a loss of 97% on the national stock market.
- Third Prize: is also a trip for two to Las Vegas, in the state that has America’s highest foreclosure rate and highest rate of homelessness.
There is no mention of steak knives being awarded to anyone.
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