This article, written by Shane Morrow, CFP®, CIMA®, explains many of the factors that led to the Crash of 1929 and details the aftermath in the financial industry. IPC believes that there are many parallels between the investment trusts of the 1920's and the hedge fund industry today.
After the Crash of 1929, most investors lost faith in the financial system. Investment trusts, which lacked formal regulation and transparency, were now reviled by a scorned society of investors. It is not difficult to find parallels between the investment trusts of the 1920’s and the hedge fund industry today. Many clients and financial advisers are now questioning hedge funds and looking to the past to speculate about the future of their regulation and direction in general. Please click on the attachment for IPC’s comments…
