The Bubble For Brokers And Advisors Continues To Deflate

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Reasoned, Relevant And Often Contrarian Commentary On Economics

TimingLogic

Birthday: November 07

Bio: I'm an electrical engineer and mathematician by training. My career has spanned diverse areas of expertise from being part of a team which designed the world's most powerful computers to corporate consulting around business transformation and information-based solutions to being a corporate sales and marketing executive in the information technology and business consulting space. I’ve led teams responsible for innovative and transformative solutions and been part of teams that helped set strategy for many of America's greatest companies. Two of my interests are econometrics, democratic finance and quantitative - qualitative analysis. Over the years I have developed risk-based models and trading systems meant to identify significant investment opportunities and periods of extreme risk. My blog is an outlet for another of my passions, writing. I generally consider myself a contrarian. Therefore, many of my rantings are meant to encourage people to question what they believe to be true. Terms of Use & Disclaimer: First off, I don't take anything on here too seriously and you shouldn't either. These are simply sardonic rantings of Bill, my alter ego, often meant to agitate for peaceful & nonviolent reform. This web site reflects the views of its authors. It is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than its authors. The information on this site is provided for discussion purposes, comedic relief and entertainment only and are not investing recommendations. The authors may have positions in securities mentioned herein. Under no circumstances does this information represent a recommendation to buy or sell securities. While information discussed on this site was gathered from what are believed to be reliable sources, in no way is informational accuracy guaranteed. All information on this site may contain errors and omissions. Trading and investing involves high levels of risk. Always consult a licensed financial advisor or broker before making any and all investment decisions. Authors of this site and any sites which are fed by said site, including Open Salon and others, will assume no responsibility for the actions of the reader and user. Readers and users agree, as condition to accessing this site, to release and hold harmless this site's authors from all liability in connection with this site or any views posted on this site. All readers and users of this site agree that use of this site requires acceptance to the current Terms Of Use & Disclaimer and that current terms include any and all use and material from site inception. If you do not understand these statements in their entirety or do not agree to be bound by this current agreement, you must immediately discontinue use of this site. This Terms Of Use & Disclaimer may change at any time and it is the reader's and user's responsibility to review, understand and abide by any updates.

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AUGUST 8, 2012 5:33PM

Rate: 3 Flag

Just an update on a long term outcome I have written about for the last seven years. When I first wrote that the financial advisor bubble was going to pop back in 2006, the ranks of this profession were swelling at record rates.

Reuters is severely underestimating the eventual downside of this profession just as happed with the similar profession of real estate agents. The investor class is headed for the garbage heap.

Financial advisors/brokers are a tax on society. They produce nothing and are consumers of capital. In other words, they destroy wealth. That is clearly a tax. And, what is even more ridiculous is that numerous studies have been done that prove advisors underperform the market about 90% of the time. So, not only are they a tax but they are an insidious one through systemic incompetence that helps people lose more money than were they not to seek any advise.

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Sorry my friend I have not been able to comment on your extremely erudite posts. The same go’s for our friend the patriot and sage RW005. I’m trying to write a book TL and it’s a lot of hard work. I saved something from Zerohedge I read the other day. I figured it might be right up your ally. Let me know what you think of it:

http://www.zerohedge.com/news/guest-post-pseudoscience-economics

Jack Heart

August 09, 2012 12:31 AM

Ain't it the truth!

;-)
.

skypixie0

August 09, 2012 06:47 AM

Hopefully you'll remember us low-lifes when you are a published author.

Yes, it is the truth...........

TimingLogic

August 09, 2012 12:36 PM

Easy come, easy go, a meaningless blip on the page of history.

l'Heure Bleue

August 09, 2012 09:10 PM

TL - there are good fee-only financial advisers (planners) out there. I think you are being a little too broad in your use of the term. You seem to be referring to advisers who work for the large brokerage firms and banks and so forth. They are clearly biased and many do not place the client's best interests first.

grif -

August 09, 2012 11:57 PM

The data doesn't support your position. Even in today's times where it is reasonably easy to outperform the market, the data doesn't support your position. Wait until the financial bubble pops and all of the endless free money granted by the Fed to keep all of these assets propped up then returns to the mean. Come back and talk to me about your beliefs then. They'll pop along with it.

Long term returns in a functioning economy are 3-4%. What you have witnessed and believe in that has happened since Reagan is economic fraud. You'll learn. Probably too late.

TimingLogic

August 10, 2012 09:46 AM