The Sorry State of the Investment Industry

Today’s New York Times reports on how financial advisors sold so called sophisticated and complex investments to investors who didn’t understand them.  The types of investments mentioned aren’t suitable for most people, and should never be marketed to mom and pop savers.  But, of course, salespeople always have a catch with which to lure prey.  The catch is usually topical, a need common to most people.  Today, that need is for a better yield for income (How would you like to earn a better yield on your savings?).  Tomorrow, it’ll be something else.  But we should always be skeptical and on guard.  I hope to cover appropriate due diligence in future posts, so stay tuned.