31 July 2014

Are you paying for Broker Junkets in Hawaii?

A clear sign that the Brokers (as well as Private Bankers) are above all else supposed to generate commissions. That is how they are measured, not how well they manage their clients' portfolios. Have you ever tried to get a clear performance statement before engaging someone to run your money? It compares with having your teeth pulled out. If you get a decent performance for your portfolio you should also check whether it was pure luck or real skill that was behind the numbers.

For Top Brokers, Junkets are back, Hello Hawaii (Wall Street Journal)

22 July 2014

The bad guys are after your Money!

It just so happens that the bad guys are (in no particular order) regulators, politicians and bankers. All the people that you think are employed to look after your interests! But in reality they need someone to pay for the bankruptcy of their policies while at the same time receiving generous pay from the taxpayer/customer.

Different types of Financial Advisers

This article may not be all that helpful for anyone who is not a finance professional but it contains some useful pointers that shed some light on the choices that investors have when selecting a financial adviser. (NY Times)

14 Questions to ask your Financial Adviser

Not all of these questions can be answered easily and detailed analysis may be required, but they are a useful start when looking for an Adviser.

21 July 2014

S&P Studies on Investment Fund Performance



Picking the right Fund nearly as tricky as picking the right Stock

It might be even more difficult as there are more (mutual, hedge) funds as there are listed companies!
Regular Mutual Fund Outperformance Is Highly Rare (New York Times)

Does your Adviser put your interests first?

For anyone other than a professional investor - and even then it is sometimes difficult - it can be near impossible to know if their financial adviser puts their interest first.(MarketWatch)

13 July 2014

Online Advice - nice if you know how to use it

Robo Advisers - automated on line investment advisory based on questionnaires filled in by investors - may appeal at first sight. But do not be seduced by low cost and ease of access. If you would sit in the cockpit of an air plane you would also be able to push all the buttons in front of you - but the trick is in knowing which one and at what time. Robo Advisers may offer more safeguards and could be the right choice 80 per cent of the time but do not rely blindly on them.