The requirements for a fiduciary focus on putting your clients interests first. The investment industry fights legislation to make this a law applicable to everyone.
Even a novice critical thinker would conclude that they fight this potential law because it will reduce their profits – which it would.
So it’s no surprise to read in today’s Politico’s Money Money by Ben White the following: Continue reading Financial Advice and Critical Thinking
It’s getting harder for GM to get pension obligations met. The current strategy by management seems to be to declare bankruptcy, revise the contracts and dump the pension on PBGC, the federal Pension Benefit Guaranty Corp. This may be the correct strategy to allow the company to compete and survive moving forward, but a lot of hardworking people, and to a lesser extent us taxpayers, and going to get hurt.
There is a wise use of derivatives for hedging, and a risky use of derivatives for speculation. There must be speculation in the markets to provide liquidity, however, those that are speculators should fully acknowledge that. Where individuals and companies get into serious trouble is by starting out with the idea of risk reduction and either through greed or error, they morph into risk takers.