Enclosed is a link to Dan Solin’s write-up titled Best and Worst Investing Awards for 2010...they are the writer’s hand out on best and worst awards for “best and worst predictions, investment advice, financial products..." and so on and so forth.
According to me the article is a useful guide for investors everywhere, some kind of a general check list about what one should do and the things to be avoided.
What caught my attention was Dan Solin’s hand out for The Best and Worst Financial Product...this is what he has written, at points 9 & 10 of his article,
9. Best Financial Product: Exchange Traded Funds which, when used correctly, can permit investors to invest intelligently, at low cost. Unfortunately, they are more often misused to pick sectors and trade frequently, which reduces returns. What caught my attention was Dan Solin’s hand out for The Best and Worst Financial Product...this is what he has written, at points 9 & 10 of his article,
10. Worst Financial Product: Another tough one. Hedge funds, variable annuities, equity-index annuities and private equity funds all qualify. However, the award goes to Principal Protected Notes. Their name got them the nod. The principal is not protected against issuer default. They have excessive fees and the upside is grossly overstated. Their complexity makes it very difficult for investors to understand how they are being ripped off and why much simpler alternatives would be superior investments. This combination of qualities typifies the conduct of many brokers and other "investment professionals", and earned this product the award, but it was very close.
Daniel Solin is a graduate of John Hopkins University and the University of Pennsylvania Law School.
He has written a wonderful book The Smartest Investment Book You’ll Ever Read and is a financial columnist with The Huffington Post
Link to the write-up,
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