Confessions of a Stock Market Game Winner

The way the current Stock Market Game is constructed does more harm than good. Winning teams are rewarded for concentrated portfolios, excess leverage, and short-term reactive behaviors. Winners are determined by chance, since many of the games only last for 10-15 weeks. The bigger danger lies in the fact the victorious teams may actually think…

What Does It Take To Be A “Barron’s Advisor”? Pay the Fee!

Imagine if you won the lottery. The only thing that could curb your enthusiasm would be a “prize collection fee.” This scam is very rampant among the geriatric set and e-mail notifications from Nigeria. The cost of the ticket was the entry fee. Any additional monetary layout is a sure sign of some form of…

3 Reasons Why Companies Should Invest in Workers And Not in Their Stock

Too many CEOs are focused on short-term stock gains rather than on long-term sustainability for their companies and the economy as a whole. This is a major factor in two of our country’s largest economic problems: low wages and wealth inequality. As Rex Nutting pointed out in his article “How the Stock Market Destroyed the…

You Should Ignore Investment Advice From These 6 People

Not acting like an idiot is a huge component for successful investing. Trying to create the perfect investment strategy or being blessed with an off-the-charts I.Q. are often liabilities for the individual investor. Charlie Munger, Warren Buffet’s chief lieutenant sums this up perfectly: “It’s not brilliance, it’s just avoiding stupidity.” Regarding stupid behavior he remarked,…

Bull Market “Febezzlers” Riding High — For Now

Bull markets often hide very shady practices, as investors found out all too well when the economy imploded in 2008 and all the malfeasance of the financial services industry rose to the surface. It doesn’t take a stretch of the imagination to predict that some ugly truths will be unveiled when this bull market eventually…

Mr. Insurance Man, Tear Down This Wall!

“Mr. Gorbachev, open this gate. Mr. Gorbachev, tear down this wall.” — President Ronald Reagan, June 12, 1987 I was reminded of this famous quote at a recent educational event my firm gave for our clients. I was explaining why many variable annuities have high surrender charges, or extra fees, if you wish to get…

Coach Steve Lavin Has a Process, and So Should You

“I can’t be a coach that is more concerned about the winning than the process. Even if it means at the end of the day it ends up costing you your job. It’s the way I operate.” Steve Lavin, Basketball Coach, St. John’s University This was Lavin’s response to the reaction to his suspension of…

What Investment Advisors Can Learn from Dr. Seuss

While Dr.Seuss is known for writing children’s books, his timeless sayings would go a long way towards cleaning up the often shady world of investment advice. It would be most beneficial to investors if advisors would apply the moral lessons from his various stories (far more than any score on the Series 7 exam). It…

For “That Guy ” Who Expects a 20% Annual Return

‘As they talked, the client told Ms. Sun he expected to make 20% a year in the stock market.” The Wall Street Journal, “Advisers Act to Cool Expectations” 5/10/2015 Many investors have become irrational in their investment expectations due to the market’s recent bull run. The S&P 500 has averaged over a 20% yearly gain…

Why Congress Provides Poor Protections for Average Investors

“They seem to be doubling down on another massive rule-making that is going to harm thousands of low and middle income families. Once again, I find Mrs. Warren and the White House offering a solution in search of a problem, and we are going to push back on behalf of Americans trying to invest their…