Smaller-fries investing diversely will still experience queasiness, but they're seen as pulling ahead in the long-term; it's more the fancy pants cats using esoteric financial instruments like hedge funds and derivatives who have the most to fear in the current crunch, NYT reports.
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Okay, how about this? It's still wordy, but it's a complete sentence:
Smaller-fry investors may still experience queasiness due to recent downturns in the market, but their investments will be safe long-term, compared to the fancy-pants cats using esoteric financial instruments (such as hedge funds), who have the most to fear in the current crunch, NYT reports.
@not_seth_brundle: Well done! I nominate you to be the next Consumerist editor (full pay and benefits included, of course).

Huh?