Ep. 758: The Foundation of Good Trading with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Market Prices in the Economy
A. fund can play a very positive role in the economy for a number of reasons I think first of all our free market economy basically allocates resources based on on prices if somebody invents a drop that can cure a particular disease you know he may not have enough capital to pursue that cure but he can then raise a lot of money through the capital markets and then build the factories to pursue that idea. Hedge funds and other active investors are tending to buy low and sell high so they tend to push prices in the right direction making market to more efficient and make it easy for people to save for retirement.
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