Consider this…

40 years ago you could not buy a Currency Futures Contract

20 years ago Collateralized Debt Obligations did not exist.

2 years ago Subprime could be spoken about on Wall Street

Things change.

Fundamentals

#1 Failing

serious panic. Economic data causes

Equities drop to zero.

Communication is global and extremely fast.

#2 Growing complexity

Individual investors are trading online.

Information Overload

#3 Disappearing Borders

Source: IMF

Global Economic Output in 2000

37%

Source: IMF

Global Economic Output Today

45%

Emerging markets have had a growth explosion.

Commodity markets are exploding.

#4 Greater Transparency

Better software can help investors visualise risk.

Harry Markowitz Modern Portfolio Theory

Banks are scared as they hold many custom over-the-counter assets.

Don’t look to regulators

New financial products will be less arcane.

#5 Lack of Education

People think options are risky.

Managed futures are almost unknown.

CISDM CTA Index

53%

Correlation is -0.08 to MSCI World

MSCI World Index

42%

Individual investors will be capable of managing their own affairs.

Death of the Mutual Fund

Mindset is 70% of success.

Multi-Family Office Investment Strategies Research

Murray Priestley +852 8122 9446

http://murraypriestley.com/