“..Mindful of the statute of limitations, I discussed some of the low points of a misspent youth with a policeman friend the other day.
He said that the best policy, if you are every caught doing anything wrong, is “deny, deny, deny” – and if that fails become a police informant.
Good advice for criminals and, perhaps, financial advisors.
Faced with the inevitable prospect of lower long term returns from bonds and sharemarkets – some financial advisors seem to believe the best policy is to deny this reality – and continue with business as usual.
Recently an authorised financial advisor was quoted publicly as saying that historic long term returns would continue.
What’s more he gave reasons for this view – and today we will examine these one by one.
Before we do and continuing with the analogy to crime we should look for a motive for denying reality -
- and this is pretty clear to see as far as the industry as a whole is concerned – if not the adviser in question.
The motive is fees any advisor who tells a client that returns from a balanced portfolio will be 7 per cent pre fees -
- cannot at the same time present an investment recommendation with the industry average 3 per cent pa fee structure…”
(cont..)
go to source/story>>>
Brent Sheather: Deny, deny, deny – Business – NZ Herald News.
