If individual investors have not gotten the message so far, here is another message that comes from the mutual fund industry: The commissions your broker generates are more important than any investment return you receive. Or in investment industry jargon, it’s all about the “yield to broker” and not about
Belittling and attacking Greg Smith, the ex-Goldman derivatives trader, who wrote about his personal experiences and opinions based on working at Goldman Sachs, has become a cause celeb. But comments from reporters who cover Wall Street show some serious prejudices and deficiencies in their journalistic perspectives.
Revenue sharing is one of the mutual fund industry’s most controversial and least talked about practices. It affects how mutual funds are sold to Registered Investment Advisers (RIAs), how much compensation is paid to mutual fund wholesalers, how conflicts-of-interest are created between RIAs and their clients, how 401(k) plans are
Humility is not one of the personal traits held by many people in the investment business. This includes everyone from portfolio managers to advisers to mutual fund wholesalers. Part of this is due to the job.
Of all the astronomical numbers associated with the financial collapse–$8 trillion in lost housing equity from 2001 to 2008, and the $4.7 trillion bailout program–perhaps the largest economic cost of the long-running recession comes from the wasted talents of millions of unemployed Americans. With the official rate of unemployment running