The Hidden Problem of Long-Short Funds

There are some funds that attempt to buy stocks they think will rise and short stocks they think will fall. This market-neutral strategy seems like a good idea, but there are problems with the results of these funds. Listen to Ric Edelman explain the hidden risk of long-short funds and why you should avoid these investments.

An index is a portfolio of specific securities (common examples are the S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance does not guarantee future results.