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Are coming up but let's get right to our top story tonight hedge funds are coming for your money.
They're about to start an advertising blitz to sell their so called expertise directly to the public for the first time.
Full page ads mass mailings cold calling -- it all happened you name it.
Up until now they were banned from doing any of that and these guys have reason to be doing this now.
There in need of new money because judging by recent performance they've been doing a terrible job managing the billions of dollars they already have.
-- what -- now personal finance expert -- Gibbons.
You're welcome and well.
I won't empty out -- in the solicitations and all the out of -- well let's start here the FCC reversing an eighty year old rule that bans.
News -- solicitation.
But -- -- open up -- for hedge funds but also the private equity funds consumer advocates calling foul our consumers.
I think it opens the floodgates to all sorts of potential problems to all sorts of investor from the marketplace is gonna look a whole lot different in a couple months from now on these changes actually take effect -- -- see speculative companies illiquid companies.
Companies for little or no operational history.
Out there are soliciting funds the billboards the Internet they're going to be on your TV you can see those huge billboards on the highways.
-- -- -- anyway they -- the.
You're putting me on FaceBook well there until a winner tonight rioting on Twitter what things -- -- sweater very -- -- tweeting.
Come for the -- it's safe for the under performance.
We got another one that says there's no lack information quite like the inside information.
And also this I'm shorting your house because there was a famous hedge fund that shorted the housing market.
At the top of the crisis and made a ton of money doing that look.
Here's the bottom line here.
They're not making money they're doing worse than the index -- worst thing in -- -- the index funds and they're charging 2%.
And fees -- another they take another 20% off the top so what CN did you even if you have access to the best hedge funds.
What is best.
I mean anymore right exactly so they're not making money they've got to go out and appeal to the masses and even though they can only go after certain people it.
Certain income levels are certain people of certain billion dollars million dollars in wealth -- -- -- -- thousand income over the past couple of years.
Big deal right.
They're still gonna go after these guys -- gonna go after them fast and furiously anyway they can have really gonna give the mutual fund industry I think I -- for the money as well because.
He's got a trying to get the retirees a wealthy people also to invest.
They don't have the same time an -- they're up against different advertisers -- restrictions and I have to adhere to it.
So be interesting to see sort of how that competition actually plays out hedge funds for the mutual funds I think it's I think it's laughable because what people are smarter than us they want performance and they don't wanna have to pay this much where I think our viewers are certainly too Smart to get caught up in something like this although I want no -- so I don't know if there I mean I think investors yes and if you're making over -- not -- technically -- little more sophisticated than alone time.
But investment scams costs across all socio at are maybe so but I've got to tell you.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- small businesses start up look really tell you about an uneven playing field for small investors and that's the stock market.
-- he 7% of the trading your -- high frequency firms the first totally screwing up the market it's not a safe place to invest in individual stocks so.
Made me want to invest -- individual companies how do you do that we certainly don't you IPOs could you can't get a good prices and individual investor who already -- maybe this what do you think may -- this but if you've got these -- companies in summer gonna -- get some an enemy legitimate.
Some are going to be.
Fraudulent I mean that's the bottom line -- -- gonna sneak in there and -- to unsuspecting investors and have their way.
Well and and that's certainly the bad news and they'll probably be people who get caught up in that.
It's really going to be the onus on the individual investor to make all the Smart decisions to do their own due diligence because I think they're gonna get any help from the government as -- -- Do you due diligence check things that with the SEC you know the usual -- you should be doing anyway so maybe -- reminder -- -- we should be taking extra precautions extra for crashing down like that -- -- what is -- sixty days away sixty days away so in two months are gonna start seeing this and here I know you're going to be watching -- to see how he got -- come back and you come back and tell us what you say -- well if there's some really nasty stuff out -- to -- -- you can alert our -- out -- I won't do that.
Thank you thanks -- it.
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