Dear Mr. Market:
The stock market is made up of thousands of choices and one easy way to gain exposure to it is via mutual funds. While we don’t want to broad brush the topic, we’re going to get right into it and explain 100 reasons why you or your financial advisor should not be using mutual funds versus ETFs (Exchange Traded Funds).
Continue reading
Dear Mr. Market:
We have discussed many times how emotionally driven you are. On some days you tempt us with your record setting high wire acts and on others we have our lips virtually wrapped around the barrel of a gun in desperation; the stock market is a wicked playground.
We don’t believe that computers or sophisticated investment algorithms can completely mitigate the perils of the stock market or protect everyone from getting out of their own way, but it can at least be used as a starting point. My Portfolio Guide relies on some very unique tools that assess the stock market each month with a fresh set of eyes. While our method of “reading the tea leaves” is not necessarily a crystal ball, it’s definitely not what most investment advisors use….which is the rear view mirror. Sadly enough, many investment advisors are just like you…they’re human and they chase recent returns and mistakenly look back in history as to what has done well. While this method of analysis is the easiest to sell clients (and themselves) it’s not as effective as taking a completely fresh look at what is happening right now and how that is statistically likely to play out in the near-term. Continue reading
“When there is blood in the water…the sharks will come!”
This isn’t a quote from ‘Shark Week’ on the Discovery Channel, it is an accurate summary of what is currently happening as financial firms are targeting a huge demographic that will continue to grow in our country. The baby boomer generation (born 1946 – 1964) has made a dramatic impact on our country throughout their lives and now they’re all entering or nearing retirement. Every single day there are 10,000 additional baby boomers turning 65! As they enter retirement and roll over their retirement accounts, they find themselves being targeted by various firms attempting to ‘feed’ on their hard-earned savings. This year FINRA (Financial Industry Regulatory Authority) has filed several ‘cease-and-desist’ orders against financial firms for these practices and also launched the FINRA Securities Helpline for Seniors at 844-57-HELPS or 844-574-3577 in an effort to address this growing issue.
FINRA reported that the hotline received several hundred calls as soon as it was opened from individuals ranging in age from 45 – 99. The regulatory agencies realize they need to get ahead of this crisis as it will only continue to grow with each passing year. This spring the SEC and FINRA released a report titled “National Senior Investor Initiative”, the study focused on 44 national firms, looking at the products and services that were sold by their representatives to senior investors. Below are the results based on the revenue generated and the frequency that they were purchased at the firms: Continue reading
Dear Mr. Market: 