Wednesday, 15 April 2009

what is Hot Money

Hot money is the money that is invested for very short duration looking for the highest return
on investment. It can come and leave at a moments notice. (Incidentally the reason why there
are so many quick crashes is because of this quick money. This type of money is not
investable, it looks like an investment money but it merely comes to make a quick buck and
usually both the investor and the invested are the losers.) This is unfortunately the root cause of
the problems in world economy right now, from 3 super crashes in the world in last 10 years,
this problem will only grow. To bigger and bigger crashes. The problem lies in various funds
which are not investing but speculating in stocks and various other options, unfortunately they
are sold as investments which they are not, at least not by my definition, how is buying stocks
of a company going to make it create value?

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