As Mark Mattson told us here, sometimes these lies were known to be lies, and sometimes they were unintentional because your advisor just passed on what he or she had been taught. But even an unknown lie is still--a lie!
Here they are:
1. Stock picking works. We know which stocks you should own to get above average returns.
2. Timing the market works. We have experts who can accurately predict market movements.
3. Our research works. If you trust us and buy and sell based on our analysis, you will beat the market.
4. Track-record investing works. We have expert money managers who, based on past performance, have a better-then-average chance of beating the market going forward.
5. Commissions work. We always put your best interest first. We work for you.
6. We know what is likely to happen next, and you can use that to beat the market.
7. Markets don't work. We know what the correct price of a stock or bond should be, and we can buy mispriced stocks so you can make a big profit.
The media panders to the public with magazine covers that titillate and tantalize the human psyche with a voyeuristic rush. With little or no regard...they hook into the human instincts of fear and greed...These...abuses are paraded in front of the investor as reliable analysis and advice.
The drivel that Wall Street so profusely spews at the retail investor creates the...illusion that if you study their research you will receive superior returns. The problems and secrets that large broker-dealers have fought...to hide are coming to light. The financial community's reputation has been greatly tarnished by scandals, abuses and conflicts of interest.
A few more Mark Mattson quotes from the book before we move on to the TRUTH:
In the first three years of the new millineum, investors lost over 7 trillion dollars in the U.S. Market. This represented real money...entrusted to...brokers and financial consultants. This is money...needed to fulfill life dreams of retirement and financial security.
In the first three years of the new millineum, investors lost over 7 trillion dollars in the U.S. Market. This represented real money...entrusted to...brokers and financial consultants. This is money...needed to fulfill life dreams of retirement and financial security.
The media panders to the public with magazine covers that titillate and tantalize the human psyche with a voyeuristic rush. With little or no regard...they hook into the human instincts of fear and greed...These...abuses are paraded in front of the investor as reliable analysis and advice.
The drivel that Wall Street so profusely spews at the retail investor creates the...illusion that if you study their research you will receive superior returns. The problems and secrets that large broker-dealers have fought...to hide are coming to light. The financial community's reputation has been greatly tarnished by scandals, abuses and conflicts of interest.
Whew! No need to ask Mark to tell us how he really feels. Remember, Mark Mattson, like Veritas owner, Margaret Wittkopp, saw many of these abuses first hand. They both established independent firms as a result. As Margaret recently told me, "I had to find a different way or leave the industry altogether."
More next time...
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