Marketwatch – When TV commentator Ron Insana starts getting into hedge fund management, it’s probably time for everyone else to get out.
This isn’t to slight Insana, who is among the most sober and intelligent thinkers on that channel, if he still is on that channel.
But when people who make their living as TV pundits eschew their given profession in the hopes of corralling some easy hedge fund money, it’s irrational exuberance time.
The signs are everywhere that the glory days of hedge funds are over.
Sure, the industry will survive. There are still places in the market where savvy traders can exploit inefficiencies. People will always want to make big bets in the market. This is, after all, $1.2 trillion we’re talking about. It’s the days of massive proliferation of funds and the notion that there exists a bottomless vein of returns that is headed for nostalgia.
