Wednesday, June 11, 2008

Beware the touts.............

In the hazy summer heat you might want to put your guard around your money if you are a client of a major brokerage house. When things get slow and markets are non-trending to trending down the brokers are in need of commissions and fees.

It's each man for himself when dealing with Wall Streets legion of salesmen.

Here at Chippewa Partners we take calls from every type of brokerage firm available. The latest and newest pitches usually contain the words "structured" or "guaranteed" or "notes". All words that should put up your line of defense when listening to a pitch.

The "fund of funds" crowd is growing thin. The actively managed ETF crowd is growing in popularity as the fees grow proportionally to the amount of "management" involved.

These "hybrid" brokers that split their time between acting as a fiduciary and a salesmen are the latest twist in the saga of parting clients from their hard earned money. Beware the touts.

Your best bet is to hire a fiduciary firm. And that is guaranteed.

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