Brain Snappers and Other Wall Street Nonsense
The last time you spoke with your broker did he use any of the following words? Diversification, Price-to-earnings ratios, discretionary trading, lifting a leg (he's talking to you not your dog), leverage, divergence, fee-based compensation, escalator clause, tactical asset allocation and other mesmerizing words to place you in stupefying shock.
Brokers do that to let you know that you don't know anything about the market and you must allow them to make decisions for you. You don't know the language. You are just too dumb. Another mushroom.
Wadda ya' mean mushroom? Didn't you know? Most customers are considered mushrooms. A mushroom is grown in the dark and fed horse manure. Now you understand why they treat you that way.
Then try to get him to explain commission structures of mutual funds. Oh, you're not allowed to ask that. You might want to read page 35 in the January 31, 2005 issue of Newsweek magazine for an excellent breakdown of this Wall Street scam. Maybe you better not. You will get mad at your broker.
Another one of those big words they don't want to discuss is redemption fees. This is an extra charge of as much as 2% of the amount that is deducted from your check if you sell within a certain period of time. Brokerage companies tell you it is to discourage frequent short-term trading which adds to their cost of doing business and increases the expenses that are charged to you every year. Having owned a brokerage company I can tell you this is more of that brown stuff they feed to the mushrooms.
The reason for redemption fees is to discourage you from selling. You might take money out of your account and that must be restricted in every way possible.
Some of the biggest words are associated with those special limited partnerships. These are definitely brain twisters. You can get these in real estate, hospital construction, oil and gas pipe lines and the most confusing one of all is technology. And they are all guaranteed. That word I understand, but be sure you read the fine print to see what is guaranteed. You remember the old one that they give it to you in the big print and take it away in the fine print.
How about placing a limit bid on a secondary distribution of a special claim on residual equity certificates? You didn't understand that? Believe me you don't want to.
When you are solicited by your broker, financial planner or anyone to buy any equity you must clearly understand what you are buying.
If you don't understand it don't buy it.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
Latest News
New York Times | Microsoft's Ballmer to CES: keep investing in tech despite ... Scientific American - Las Vegas , NEV. -- In his first ever CES keynote, Microsoft CEO Steve Ballmer yesterday acknowledged the tough economic times, but urged companies not to ... Microsoft: the year ahead Tech jobs: waiting for the axe to fall Microsoft releases Windows Server 2008 R2 beta |
![]() The Money Times | The Best Investment Values in a Decade Motley Fool - These days, we're presented with what Ron Muhlenkamp a few months ago called "the best investment values we've seen in a decade." Obviously, the market has ... You Are About to Make a Bad Investment The Flight to Safety Could Burn You Wednesday's Biggest Stock Stars |
![]() Dividend.com | Billionaire investor places next supermarket bet MarketWatch - Yucaipa's investment funds have been aggressive buyers of Whole Foods shares since Nov. 24, spending a net $98 million to amass the stake. ... Activist shareholder buys 7 percent stake in Whole Foods Billionaire investor Burkle bets on Whole Foods |
Thomas, McNerney & Partners Promotes Three Members of Its ... PR Newswire (press release), NY - Thomas, McNerney & Partners is a health care venture capital firm with approximately $600 million under management, focused on investing in life science and ... |
Markets Media News | Uma Thurman No Help to Arpad Busson in Madoff Fraud’s Nightmare Bloomberg - In mid-December, EIM disclosed it was one of at least a dozen funds of funds caught up in the massive alleged fraud perpetrated by New York investment ... Hedge funds' year is worst ever, and fall may continue Blackstone To Rationalize Single Manager Hedge Funds Businesses In ... Hedge Funds Meet Their Match |
US investment in IT would create jobs, group says ITworld.com, MA - by Grant Gross A US$30 billion investment by the US government in broadband, health IT and smart energy grids would create or retain nearly a million jobs, ... New ITIF Report Documents How $30 Billion IT Stimulus Package ... $30B IT Stimulus Will Create Almost 1 Million Jobs |
Appleseed Fund Ranked by Lipper as Top Performing Midcap Value ... CNNMoney.com - "Since the Appleseed Fund's inception, we've shown it's possible to outperform the market by investing in companies with strong sustainability records and ... |
New T. Rowe Price mutual fund eyes global investment Bizjournals.com, NC - T. Rowe Price Group Inc. is launching a new mutual fund seeking reward amid the risks of global fixed-income investing. The Strategic Income Fund will ... |
How to avoid a Madoff fund San Francisco Chronicle, USA - Feeder-funds (hedge funds or funds that do all their investing through another fund) and funds-of- funds sold investment services to individuals, ... |
![]() ABC News | Learning from Madoff's Ponzi scheme WKOW-TV.com, WI - Another important lesson from the Madoff Ponzi scandal is that investing money successfully also requires some homework on your part. "If you're investing ... Video: Congress Sounds Off Against SEC in Madoff Affair Congress Demands SEC Speed Madoff Inquiry to Improve Oversight Re-defining Risk: 5 Investment Rules for 2009 |
Resources
-
No Money Down - Creative Real Estate Investing!
Learn how to control real estate Without credit checks and no money down! You can Buy With No Credit!
-
real estate foreclosures- home69
Proven real estate Investing course specializing in foreclosures and pre-forclosures.
-
Real Estate Investing
How To Start And Run Your Own outrageously Profitable Fixer-Upper Business In As Little As 45 Days, even If You Can
-
Foreclosures - Real Estate Investing - Short Sales.
Learn about foreclosures and real estate Investing techniques like short sales and subject to financing
-
Online Trading for Financial Freedom - stock daytrading strategy.
Stock index trading strategy for beginning and experienced traders alike.
-
Real Estate Investing - Foreclosures
How To Start And Run Your Own outrageously Profitable Fixer-Upper Business In As Little As 45 Days, even If You Can
-
Real Estate Investing Course for Profits in Investing
Real estate Investing course reveals proven real estate Investing strategies using Lease Options and Creative Financing where you can earn big money Investing in real estate with no down and no credit
-
Make money stock trading, day trading, Investing and trading options like the pros!
Turn $200 into $4,630 in 30 days by trading options online from your home PC. Step by step instructions for novices or investment pros. Make money stock trading, day trading, Investing and trading options like the pros!
-
Make real money Investing in real estate by Lou Vukas
Lou Vukas gives you the insider secrets to making real money in real estate regardless of your credit, finances or location at realestatefortunes.com.
-
Real Estate Investing
eBook on Real Estate Investing and Real Estate Marketing


