Amundi warns that parts of private equity market resemble ‘Ponzi schemes’

Re:Amundi warns that parts of private equity market resemble... by mym1990 on Wednesday June 01, 2022 @12:15PM (#31584106)

In times of great exuberance yes, but eventually the markets do revert back and generally the broad market has been a good source of consistent, reasonable returns(6-9%). One should use their own common sense when evaluating risk and the major reason to get into a market should not be simply because others are doing it.

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Re:Amundi warns that parts of private equity market resemble... by zasdffaa on Wednesday June 01, 2022 @12:31PM (#31584338)

Surely others doing it is a perfect reason to do it. They pile in, market surges, you hop in and get lifted, and cash out before they do. Leaving aside the critical timing of that last step, it seems obviously right (for a short-term purely economics view)

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Re:Amundi warns that parts of private equity market resemble... by zdkl on Wednesday June 01, 2022 @12:36PM (#31584433)

And that's how you get less informed private persons (ie. the public, ie. the "economy") over-leveraged on real-estate or junky assets holding the bag.

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Re:Amundi warns that parts of private equity market resemble... by zasdffaa on Wednesday June 01, 2022 @12:47PM (#31584575)

Quite so. I didn't say it was a good thing; read my parethesised affix.

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Re:Amundi warns that parts of private equity market resemble... by mym1990 on Thursday June 02, 2022 @12:53PM (#31597391)

In theory sure, but it has been proven over and over and over that it is incredibly difficult to time the market and some people who do this will get burned.

Also, people become incredibly greedy in these situations, they think they will be able to get out of the game but keep going back for more.

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