How ironic that the industry that wants us to trust it with our funds can’t manage its own money and is rife with illegal conduct.While you and I may find this difficult to understand, Wall Street executives “get it.” In a recent survey, a quarter of Wall Street executives viewed wrongdoing as “a key to success.” Sixteen percent indicate they would engage in insider trading if they knew they would not be caught. Almost a third said they felt pressured to “compromise ethical standards or violate the law.”
I was surprised these percentages were so low. As recent convictions for insider trading demonstrate, some hedge fund managers fully understand the only way to “beat the markets” is to engage in illegal insider trading. I am unaware of any credible, peer-reviewed data indicating the daily grist of brokers and most advisors (stock picking, market timing, fund manager picking) adds value. When you are selling an expertise you don’t have, you understandably are under pressure to bend or break the rules.
Wall Street executives may feel they have no choice other than to engage in illegal conduct, but you do. Don’t use them to manage your hard earned money. They will always have an endless supply of gullible clients who can’t figure out they are emperors with no clothes. Don’t be one of them.
The Wall Street bullies have convinced a majority of people that they can ‘beat’ the market. This article communicates that ‘beating’ the market consistently requires breaking the law. Is this how you want you money managed? When your manager is caught you will lose?
Please comment or call to discuss.