Surviving the Coming Mutual Fund Crisis: How You Can Take Defensive Measures to Protect Your Money
Books / Hardcover
Books › Business & Economics › General
ISBN: 0316141453 / Publisher: Little Brown & Co, August 1994
Arguing that the nation's mutual fund market will soon collapse due to the weight of its unprecedented popularity, a respected investment analyst explains how to take defensive action to protect threatened financial investments
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Just as Americans are beginning to cope with the financial debacles of the 1980s-junk bond scandals, the destructive excesses of "corporate raiders," the collapse of the savings and loan industry, illegal insider trading, crushing government debt - a new crisis is brewing that has the potential of stripping more individuals of their life savings than anything else in financial history.Attracted by "proof" of the success of mutual funds in the 1980s, unprecedented numbers of people have climbed on the mutual fund bandwagon to make it the single most popular financial idea ever. But that idea is cracking under the weight of its own popularity. And it is only a matter of time before those cracks deteriorate into crisis.Surviving the Coming Mutual Fund Crisis uncovers the cracks and shows how mutual fund industry leaders are scrambling to patch them up to stave off the inevitable - while at the same time grabbing for themselves an extraordinary concentration of control over the financial world. The book traces the radical changes being made within the mutual fund industry and the trends emerging from those changes that are leading American investors down the road to disaster:Wholesale government deregulation. Despite the lessons learned from the deregulation of the savings and loan industry, limits on how mutual fund companies can invest other people's money are being systematically stripped away.Expansion into high-risk investments. The use of speculative investment techniques - such as margin buying and short selling - and heavy commitments to high-risk investments are now becoming "standard" practice.Investor overconfidence. Overconfidence and unparalleled popularity have pushed the mutual fund idea into the realm of mania.Burgeoning scandal. The mutual fund industry's long-standing image as "squeaky clean" is crumbling as the crooks move in.Concentration of financial power in the hands of a few. As Americans entrusted their money to mutual funds, a new "elitist" control of the investment world was created - primarily enriching the few people who handle other people's money.Surviving the Coming Mutual Fund Crisis tells exactly what is happening, how investors can monitor developments, and what defensive measures to take now.
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