I’ve written about the dangers of relying on stockbrokers before. In fact, back in October, I warned you: “Don’t Let Your Broker Make You Broke (Do This Instead).”
You see, most stockbrokers aren’t traders, and they aren’t analysts, but salesmen. They usher clients into financial products with little regard for their individual financial situation or the broader markets.
That doesn’t make them bad people. In fact, I have friends who are stockbrokers, and they’re nice people.
These friends of mine are trustworthy and try hard to make their clients money. But at the same time, I would never let any of them handle my money, not even a small portion of it.
That’s why a new analysis published in yesterday’s Wall Street Journal really grabbed my attention…
According to the Journal, some stockbroker misdeeds — including financial crimes and other serious felonies — aren’t always disclosed to their brokerage house employers, or to the Financial Industry Regulatory Authority.
Here’s what you probably don’t know about the brokerage business… and yes, it could hurt you…
The markets are on the soft side this morning, meaning the benchmark indexes are down. But not significantly. After all, what’s half a percent, or three quarters of a percent, or a percent between bookend bulls?
Or for that matter, what’s a few percentage points or a double-digit percentage drop, if you’re hedged?
We’ll see how the rest of the day shapes up, or shaves down.
Is this anything to worry about, this little swoon?
Maybe, maybe not. Only time will tell. The thing about time is to make sure you’re not out of it when you need to be putting on defensive positions to protect your retirement, your savings and your future… and to be in positions that make money from swoons.
The reason I’m not worried is because, as I told you here last Monday, there are macro worries out there that are going to lean on the market. We know what they are. I identified some of the big ones.
That wasn’t a cryptic message.
It was a heads-up for you to take action.