10 ways Wall Street skims $100 billion of your money By Paul B. Farrell, MarketWatch
Wake up America = You’re wasting your money paying big advisory fees on the stock-market casino. Advisory fees = Cost Americans $100 Billion/Year in lost profits.
# 1 BIG Secret to successful investing = Low expenses ratio. = Bottom line: pick cheap funds, no-load index funds.
# 2 American investors are losing over $100 billion annually to Wall Street = Financial industry has no moral compass, no integrity. You can’t trust them. Their total focus on getting rich. Zweig’s Journal column, “Investors: How Dumb Are You?” Average investor earned 3.7% annually over the past 30 years = 33% of S&P 500’s 11.1% annual returns. Wall Street’s casino just keeps scamming your funds by 7.4% annually. = Americans Lose $100+ Billion.
# 3 Wall Street is a rigged casino, get out = Entire financial-advice industry run a rigged casino? = “mutant capitalism” Gambling casino with millions of “croupiers” manipulating the gaming tables 24/7, skimming billions off the top.
# 4 Advisers have no stock-picking skills = Based on “50 years of research” the “stock-picking skills” of managers and advisers is “more like rolling dice than like playing poker.” = “blind guesses”
# 5 Markets are notoriously unpredictable, irrational and dangerous = 75% of the market’s biggest twists and turns in history were irrational and unpredictable black swans. Wall Street’s just guessing.
# 6 The more you actively trade, the less you earn = Substantially reducing investor returns: transaction costs, stock-picking skills and taxes.
# 7 Online trading makes it easier to lose, faster and even more = Before going online they were beating the market by 2%. Afterwards they were losing, under the market by 3%. Stay out. “The best thing, really, for an investor to do is buy a good company and hold it … Trading often and heavy is not something that makes you a lot of money. That’s contrary to my own interests, but it is the truth.”
# 8 Investors encouraged to buy high/sell low, losing at top and bottom = Irrational exuberance creates a buying frenzy at the top. Investors jump in. They lose. Then hang in there as the market drops, buying on dips. More drops. Panic, fear sets in, they sell at the bottom. Lose. = Playing in the market casino is a fool’s game
# 9 Warning, your brain’s a saboteur and Wall Street’s manipulating it = “optimism bias,” overconfidence = Bad investment decisions taking on too much risk, and lose. Then we hide that reality, lie to ourselves. = underperforming by 5% to 15%.
# 10 Most stock market day traders really don’t make much money = The rare successful trader rarely make more than $100,000/Year = Averaging half that. = “Market timers, if they don’t die broke, rarely beat the market.”
Simple FACT = Wall Street is a high-risk gambling casino, where the house always wins skimming over $100 billion from America’s 95 million Main Street investors/Yr