Consumer protection against financial rip-offs, scams, and imprudence
What is a brokerage wrap account? In a standard brokerage account, fees are generated every time there is a transaction. Brokers with clients in such accounts have the incentive to come up with reasons to trade. Notorious practitioners often churn client accounts,…
What is art? As an investment, art is simply an object with perceived value. If the perception improves, the value will rise. Increased interest in the artist or style can help. Supply and demand factors are also important, especially if an artist…
What is an alternative investment? “Alternatives” are investments that are not stocks, bonds, cash instruments, or funds made up of those things. Common ones include gold and other commodities, options and other derivatives, hedge funds, and real estate. The chief attribute sought…
In a standard brokerage account, fees are generated every time there is a transaction. Brokers with clients in such accounts have the incentive to come up with reasons to trade. Notorious practitioners often churn client accounts, buying and selling frequently to beef…
Chasing winners means buying securities with good recent performance. If some stock price rose of late, you might believe demand for their products will continue to rise. If a mutual fund has outperformed its peers, you might conclude it has more adept…
Market timing is the attempt to be fully invested when the market rises and not exposed when it falls. Basically, buy low and sell high. You do not have to find winners; you simply have to be invested at the right time.…
Commercials hawking gold as a sound investment are once again littering the airwaves. Gold is neither sound nor an actual investment. It is a mere commodity, comparable to wheat, oil, and pork bellies. Its price, in the long run, is most impacted…