Posts belonging to Category Unsuitable Recommendations
Posted by Alan PerryonFebruary 13, 2013
InvestmentNews recently published a lengthy excerpt from Simon Lack’s book entitled “The Hedge Fund Mirage: The illusion of Big Money and Why It’s Too Good to be True” (“Hedge funds benefit insiders only”). Mr. Lack studied the matter and concluded that the appeal of hedge funds has no sensible basis. While there are occasional shooting […]
Categories: Alternative Investments, Brokerage Firms, Citigroup Hedge Funds, Common Securities Broker Abuses, Elder Abuses, Fairness/Just & Equitable Conduct, Hedge Funds, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Alan PerryonFebruary 12, 2013
The biggest problem with exchange traded funds is the fact that they can be traded, according to Vanguard Funds Founder and index fund proponent John Bogle. The ability to trade ETFs plays into one of the top ten mistakes made by investors. That mistake – trying to time the market. Market timing is speculation, not […]
Categories: Alternative Investments, Brokerage Firms, Churning, Common Securities Broker Abuses, Exchange Traded Notes (ETNs), Exchange Traded Products (ETPs), Exchange-Traded Funds (ETFs), Fairness/Just & Equitable Conduct, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Alan PerryonJanuary 21, 2013
Leo Wells, CEO of Wells Real Estate Funds, told broker-dealers that his firm will not register any new nontraded REITs pending new guidelines that are expected to be published by the Financial Industry Regulatory Authority (FINRA). He indicated that his firm needs “clarity” before marketing any new products (“All’s not well as Wells halts REIT […]
Categories: Alternative Investments, Brokerage Firms, Common Securities Broker Abuses, Elder Abuses, Fairness/Just & Equitable Conduct, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Nontraded REITs, REITs, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Unsuitable Recommendations
Posted by Page PerryonJanuary 8, 2013
Wall Street’s recent promotion of alternative investments should warrant serious concern among investors. It serves as an unpleasant example of history repeating itself. In the mid-1980s, Wall Street firms became enamored with limited partnerships (a form of alternative investment) that invested in so-called hard assets, paid the firms high commissions and fees, were illiquid and […]
Categories: Alternative Investments, Ameriprise, Asset Backed Securities, Bank of America, Brokerage Firms, Citigroup Hedge Funds, Closed End Funds, Common Securities Broker Abuses, Exchange Traded Notes (ETNs), Exchange Traded Products (ETPs), Exchange-Traded Funds (ETFs), Fairness/Just & Equitable Conduct, Hedge Funds, High Yield (Junk) Bonds, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Limited Partnerships, LPL Financial, Merrill Lynch, Misrepresentation/Omission, Non-Traded Business Development Companies, Nontraded REITs, Oil & Gas, Peer to Peer Loans, Private Equity Investments, Private Investments/Reg D, Promissory Notes, REITs, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Unsuitable Recommendations, Variable Annuities and Equity-Indexed Annuities
Posted by Page PerryonJanuary 7, 2013
The SEC has hired hedge fund industry professionals to assist in its investigation of problems and abuses in the hedge fund industry. Three SEC enforcement units are involved in the investigations: the Asset Management unit headed by Bruce Karpati, the Market Abuse unit, and the Structured and New Products unit. The SEC has brought over […]
Categories: Alternative Investments, Brokerage Firms, Citigroup Hedge Funds, Common Securities Broker Abuses, Fairness/Just & Equitable Conduct, Hedge Funds, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Regulatory Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Page PerryonJanuary 2, 2013
The financial press is increasingly critical of an investment product it glamorized in the past ? hedge funds. As a group they have underperformed unmanaged stock and balanced fund indices for the last 10 years while enriching fund managers. Yet more hedge funds continue to come on line. The question is why do they continue […]
Categories: Alternative Funds, Alternative Investments, Brokerage Firms, Citigroup Hedge Funds, Common Securities Broker Abuses, Fairness/Just & Equitable Conduct, Hedge Funds, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Market Developments, Misrepresentation/Omission, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Page PerryonDecember 27, 2012
Hedge funds have long been a quagmire for investors according to informed observers. Nevertheless, they somehow attract money with the lure of spectacular returns despite actual poor performance. Hedge funds traverse high-risk and often exotic territories and cannot be readily liquidated. More often than not, they are doomed from the outset by very high management […]
Categories: Alternative Investments, Brokerage Firms, Citigroup Hedge Funds, Common Securities Broker Abuses, Elder Abuses, Exchange Traded Products (ETPs), Exchange-Traded Funds (ETFs), Fairness/Just & Equitable Conduct, Hedge Funds, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Limited Partnerships, Misrepresentation/Omission, Nontraded REITs, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Page PerryonDecember 26, 2012
Municipal bonds may be sailing into the “perfect storm.” Municipal bonds and bond funds have declined rather sharply in recent days. While these investments have been considered very low risk in the past, a number of factors have combined increase their risk and to drive yields up and prices down. Those factors include a large […]
Categories: Brokerage Firms, Common Securities Broker Abuses, Fairness/Just & Equitable Conduct, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Municipal Bonds, Mutual Funds, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Page PerryonDecember 20, 2012
Wells Timberland REIT recently revised the estimated value of its shares down to $6.56 per share, 34.4% below its 2006 initial public offering price of $10 per share. The new estimate is reportedly based on appraisal information from a forest consulting firm and a certified public accounting firm; however, the REIT’s board made the new […]
Categories: Alternative Investments, Brokerage Firms, Common Securities Broker Abuses, Fairness/Just & Equitable Conduct, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Nontraded REITs, REITs, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Page PerryonDecember 19, 2012
Investors are being sold more and more alternative investments and large broker-dealers are ramping up to supply that demand, according to the Wall Street Journal (“Alternatives Get a Boost”). The trouble is that most investors do not fully understand these products and their brokerage firm advisers do not fairly explain the risks and problems associated […]
Categories: Alternative Investments, Ameriprise, Asset Backed Securities, Bank of America, Brokerage Firms, Church Bonds, Closed End Funds, Common Securities Broker Abuses, Crowd Funding, Derivatives, Exchange Traded Notes (ETNs), Exchange Traded Products (ETPs), Exchange-Traded Funds (ETFs), Fairness/Just & Equitable Conduct, Hedge Funds, High Yield (Junk) Bonds, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Limited Partnerships, LPL Financial, Merrill Lynch, Misrepresentation/Omission, Mortgage Backed Securities, Mortgage Securities & Collateralized Debt Obligation Problems, Non-Traded Business Development Companies, Nontraded REITs, Oil & Gas, Private Equity Investments, Private Investments/Reg D, Reverse Convertibles, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Structured Notes, Tenant-in-Common Interests, Unsuitable Recommendations, Variable Annuities and Equity-Indexed Annuities
