Investing in Futures

There’s an interesting article on Yahoo! about considering alternative investments, especially considering the state of the economy right now. I’m working on a degree that will allow me to run my own business eventually, so this is something I’m trying to get into- or at least learn more about. The most interesting thing I found about the article mentioned possibly getting a futures broker.

By doing something outside the norm, they are far more likely to lose your business. As long as they can brainwash you into thinking 5% is good, they can go on taking in management fees, and you’ll be happy thinking you’re getting a good risk/reward tradeoff.

However, alternative investment managers, such as managed futures, are paid to balance the line between risk and reward, giving them an incentive to grow your returns at a higher rate without risking so much to lose your business.

So, it’s better to get a broker that likes to take risks…I guess. I’m a little up in the air about the risk taking right now simply because I haven’t got a whole lot of money to lose. But it’s certainly something worth thinking about if you’re looking to get the best out of your investments.

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