These Funds Yield Up to 10% (But They’re Primed to Fall 33%+)

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Many people are desperate for any decent yield these days, which is making oil and gas funds (with payouts that can stretch into the double digits) look attractive.

But the trouble with buying these funds now is that you’re putting yourself at risk of price drops far bigger than any yield you might collect. That’s a worst-case scenario for anyone in retirement or hoping to clock out in the next few years.

Another thing to consider is that the argument for investing in energy funds is based on the recent improvement in oil prices, which appears to be accelerating.

Recent Oil-Price Moves Mislead …

I’ve seen a few pundits point to a “boom” in oil prices, selectively choosing time periods like the one above, to argue in favor of jumping into energy stocks and funds.… Read more

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No one likes digging through pages of regulatory filings, but they can often yield valuable information.

For example, institutional investors with at least $100 million of assets must file a 13F form with the Securities and Exchange Commission once a quarter. Think of this as a quarterly scorecard or a window into the holdings of some of the most successful and often secretive investors in the market.

Should you follow suit and piggy-back some of these trades? Well, it’s certainly cheaper than the $1 million minimum buy-in it often takes to invest with the most successful hedge funds, if you’re even invited.… Read more

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