Conflict of Interest?

By James | June 26, 2009

Two things hit my screen this morning.

The first being an this article from Mish on Buy-and-Hold vs. CD-Ladder. The results are surprising. The concluding thought is not and that is B&H does not work and has not worked for decades. The only people getting rich using buy-and-hold are brokers. Here cheap cytotec online is his conclusion:

A personal anecdote might help explain things: In January of this year, an investment advisor from Wachovia Securities called me up and stated “Mish, I am sitting on millions because I see nothing I like”. I told the person I did not like much either and that Sitka Pacific was heavily in cash and or hedged. His response was “Well, I do not get paid anything if my clients are sitting in cash”.
I called up a rep at Merrill Lynch and he said the same thing, that reps for Merrill Lynch do not get paid if their clients are sitting in cash.
Massive Conflict of Interest
Notice the massive conflict of interest possibilities. Reps for various broker dealers have a vested interest in keeping clients 100% invested 100% of the time, even if they know it is wrong. And so it is every recession, bad advice permeates the airwaves and internet “Stay The Course”.

If you are one of the many people who lost 30%-50% buy propecia 1mg of your portfolio last year because your broker told you to stay the course you should be outraged to read this.

Which brings me to the 2nd thing I found. Read through these “internal” sales documents leaked from the former Lehman Brothers. They are quite telling.

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