Everything Investing: Hedge funds = bonds

Thanks to Abnormal Returns for the source of this post, which is actually just the image you see on the right. One key thing to note is that the risk adjusted return is likely much lower as well, so in the end you were better off investing in bonds (if you had the choice) starting in January 2006.

This goes back to the advice we gave earlier that no one has been able to time the market consistently. An additional piece of advice that goes hand in hand with the timing advice is that very few people can beat the market consistently. The hedge fund index performance on the right backs up that claim.

Addendum: Found out the original source and article for this graphic.