Without drawing this out into a long piece, we wanted to briefly discuss some very important points.
If you have someone handling your investments, you had better damn well make sure they are following someone who knows what's going on. Remember, ALL financial advisers are salemens. They are NOT analysts. They are NOT researcher. And they are NOT investment strategists.
They ARE salesmen. It's as simple as that. As a result, they focus on sales and administrative issues.
While there are certainly some good financial advisers and fund managers, they represent the rare exception. When it comes to financial advisers (FAs), we hold the view that they need to be actively manging client accounts allocated in a pool of two to four different funds.
Because FAs have a great deal of responsibility unrelated to investment management, those who have made the wise decision to directly manage client accounts rely on others to help them make investment decisions that will impact client returns.
So who might these FAs follow?
If they work for a wire house, they are likely to follow their firm's research analysts, economists, etc. By now, you should realize the uselessness of Wall Street research.
If they work for an independent shop like LPL, Wachovia and others, lord only knows where they are getting their information. There are many jackels out there who talk a good line but that's where their skills end. A good example of such individuals can be seen by turning on CNBC.
But one thing is for certain. All financial advisers, stock brokers, money managers or whatever you want to call them are in the business of sales and moving money around. That is NOT investing. Yet, investors pay them a fee regardless how they perform. That sounds like a damn good business to be in.
As a result, risk management is only a tiny focus at best. In most cases, there is no real risk management because they get paid based upon the amount of assets invested in the capital markets. They do NOT get paid to pull out of the market and sit in cash prior to a market collapse.
The bottom line is this. If you have your investments with someone, some firm or some fund, you had better make sure they are patched into our premium institutional research.
Otherwise, don't be surprised when you lose your ass.
Remember, we hold the leading track record in the world. And we have backed this claim with $100,000.
We have extensive experience and a proven track record of excellent success advising a wide variety of investors, from pension plans and endowments, to mutual funds, hedge funds and high net worth individuals.
We have received a huge number of requests to manage money over the past few years, many from our readers. This is something we might consider in the future.
But until that time, we have one piece of advice.
If you have entrusted your hard-earned cash and retirement funds to a financial professional, an investment fund or money manager, you had better make sure they are clients of AVA Investment Analytics.
Otherwise, we advise you to move your account to someone who is wise enough to get our research.
Or else manage your investments on your own.
Armed with our research, we have no doubt that you will be much better off.
For those FAs out there who plan to keep selling equity mutual funds and collecting the 1% trailers, we want to warn you that you are not going to grow your asset base significantly in coming years because funds only work well during a prolonged bull market.
In fact, you stand a good chance to lose many of your clients as they transfer to actively managed accounts, advised by us.
The days of easy money are gone. Those who are patched into top research stand to take money from the herd.
For investment funds and financial institutions seeking to improve their performance