"Last month, I bought some blue-chip stocks at a bargain price. Like you said in the last election, “The stock market dive should be looked upon as a buying opportunity.”

Unfortunately, there was no one around to warn me and other investors about hedge fund sell-offs that amounted to billions of dollars. Hedge funds, apparently, have more than a trillion dollars under their management.

The present Bear Market is a very risky place to be. Who knows when the bottom is going to be found on it, especially, if hedge funds managers have to sell blue-chip stocks to cover margin positions.

As long as there is no control over these panic sell-offs, I’m not buying anything on the stockmarket. It’s been rumored that more panic selling by hedge funds could reduce stockmarket value by another 30%. No kidding, I watched this forecast from a fund manager on BNN(Canadian Business Network).

I don’t even know why hedge funds exist. Shouldn’t there be just one level for group investment, MUTUAL FUNDS? Hedge funds lack accountability or transparency. The G20 group that met in Washington recently, surely knows the negative impacts that markets have taken from hedge fund sell-offs.

With online investing so easy, it’s important to have an adequate risk assessment of macro economic conditions.

There are heavy risks investing in anything in a bear market. It’s like trying to catch a knife that is falling. These risks should be communicated to investors.

Companies that could go bankrupt like GM or Nortel are high risk investments and should be labeled as such. Stock-rating experts label stocks, “buy”, “sell” or “hold”. There should also be a label that says “don’t buy” or “not recommended to buy under present market conditions”. 

We are relying on governments to manage risks connected to stock markets. This is not being done as many investors have been spooked and chased out of the market.

Few of us can tolerate having RRSPs or pension funds devastated by speculators with lots of money. 

It is time that markets were made safe for real investors rather than those who want a quick buck.

Do whatever needs to be done in these situations, put hedge funds out of business or communicate risks factors on market indexes relating to massive sell-offs.