Hi,

I'm 13 and would like to be a hedge fund manager when I grow up. I am doing a reasearch paper on it for school and I was wondering what a typical day was like, or a typical week.

Thanks!

Answer
Get up at 4 am to check the European markets open and Asian markets close; read the Wall Street Journal; study your positions. Get to the office early (between 6 - 7:30) to run numbers, check commentary on Asian markets close, monitor European markets, and early trading data. Much of the time is spent on running models, verifying data, watching markets, doing research on various countries and their markets, stocks, forex, private placements, industry data, political events affecting the markets, assessing various types of risks, including sovereign risk. Meet with your contacts & sources in various industries. Supervise staff (if you make it into management). Develop new strategies for investing. Monitor your fund's participants - their investments and withdrawals. Write reports; meet with writers who do your prospectus, reports, collateral materials, communications with investors in your fund.

These are a few of the things you'll be involved in. After the markets close and you assess the day's trading and events, you can have dinner with your spouse, put the kid to bed, and get back on the 'puter to check the Asian markets openings and events.

Why is the USD taking a beating in the Forex market?

It has been losing ground to the Japanese Yen, Euro, and the British Sterling. What's the deal? When will this end? This is seriously screwing up my investment strategies.

Answer
The USD dollar is having problems for a couple of reasons. First, there is concern over the status of the US economy in general. We have a war going on that continues to ring up a large bill that will have to be paid by the US taxpayers sooner or later. We have a gazillion and a half baby boomers moving into their "golden years" that is predicted to put massive strain on already questionable social security and healthcare resources. And we have an consumer base that was heavily leaning on housing appreciation as a stimulus for the economy.

Now on top of that challenging set of circumstances we have an international community discussing the replacement of the USD as the primary trading currency in the foreign exchange marketplace. Remember all countries currently have to convert to USD to buy and sell oil and other commodities. What if this were to be slowly replaced with the Euro? or a new Middle Eastern currency like an Oily or some such? or what about the Yuan, rumor has it these guys are packing some serious weight these days.

Couple all this with a US political machine which is more concerned with "he said.....she said....partisan politics" as opposed to focusing on developing a sound economic foundation upon which our country can grow and self sustain......and you then have the most troubling situation for any Forex currency.....uncertainty!

That being said the US still has a lot going for us. The USD is not going to implode over night (at least I hope not). I have most of my clients currently positioned in long term hedging strategies that will perform nicely whether the USD goes up or down.

May all your guesses be good ones.

Paul