One of the biggest lies flaws about investing in ETF’s is how you get diversification.
I’m not saying that they are bad investments. I’m merely pointing out the misleading idea about diversification.
Far too many “expert advisors” encourage you to spread your money among numerous ETF’s for safety reasons. (Even creepy Warren Buffet thinks the “little guy” should buy them).
Here’s the problem.
The vast majority of these GOO ROO’s touting ETF’s DID NOT make their fortunes from buying them.
However, they continue to increase their fortunes by telling YOU to buy them.
It’s the Wash, Rinse, Repeat cycle consistently used by the “Club” to fleece the sheeple.
Let me give you an example.
Years ago, one of Wall Street’s huge money-making schemes used a similar strategy of diversification using mutual funds. They’d package a group of funds (based on your “risk tolerance”) and charge you a fee for managing them.
The big problem was most of the funds held a lot of the same stocks. (So much for diversification). And to make matters worse, when the “managers” adjusted their portfolios, they would trade internally among themselves.
Behind the scenes they’d say to each other, “Hey, Louie. I need to unload some dogs in my fund. So, if you take them from me, I’ll return the favor to you.”
This was how they justified charging you a “Wrapped fee” in addition to the management fees.
Today’s ETF’s play by the same rules. (Albeit the fees are lower)
You want proof?
- Start by looking at the similarity of the holdings/diversification among your ETF’s.
- Look at how the managers trade among themselves.
- Remember that very few “big players” made their fortunes by diversifying among so many different stocks.
Stop being Wall Street’s victim and learn how to beat them at their own game.
It’s easier than you think…ESPECIALLY in Turbulent Times that we’re now facing.
Remember, Turbulent Times produce tremendous opportunities of a lifetime.
Learn how to take advantage of them and you won’t end up like your “Cousin Eddie” who constantly gets killed by the market’s volatility.
Follow this link:
You’ll thank us later.
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