Do You Trust The Wall Street Bullies?

During conversations with potential clients I continue to be amazed that these people believe that the Wall Street bullies can and will help them. They believe that Wall Street firms like Merrill Lynch, et al, can and will be able to give them earn above average returns with little or no risk. They continue to believe that their investment money is ‘safer’ with these Wall Street bullies.

These investors appear to have very short memories. Back in 2001 Merrill Lynch had Enron on their Strong Buy list just days before the scandal broke. Their investors lost hundreds of billions of dollars. And yet investors continue to believe that these bullies have their best interest in mind when recommending investments.

Remember this, these bullies are held to a suitability standard while the fee only registered investment advisory firms are held to a fiduciary standard.

A suitability standard means that the recommended investment need only be suitable. There is no requirement that the recommended investment be in the best interest of the client. Conversely, those held to a fiduciary standard must make recommendations that are only in the best interest of the client.

One question I ask is why is the financial services industry fighting so hard to not follow the fiduciary standard? Do these bullies have something to hide? These bullies have been profiting off investors for a long time. And they want to continue to profit off these gullible investors.

Where do you want your investment dollars? With someone who must make recommendations based on your best interests or theirs.

As to ‘beating’ the market Mark Matson wrote in Mind Over Money

“The critical element to outwit, outsmart and out invest the Wall Street Bullies is to know that it’s not that hard. All you’ve got to do is diversify, get market rates of return, and stay the course over long periods of time.”

An investor coach/fiduciary adviser will help you avoid the three signs that you are gambling and speculating with your investment money. When you follow these signs you are helping the Wall Street bullies profit at YOUR expense.

  • Stock picking.
  • Market timing.
  • Track record investing.

When you are ready to stop empowering the Wall Street bullies and invest with less anxiety with greater long term returns. You must fire your broker/agent (Wall Street bully) and hire an investor coach/fiduciary adviser.

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