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Like the moth eaten Chinese Walls between the investment side and the trading side, all Wall Street firms have conflicts of interests that lead to client underperformance.

1)Fee accounts, where you pay them 1 to 2% of your assets but are not charged commissions nor mutual fund loads – they push mutual funds so that they collect 12b-1 fees and other remuneration.
2)Regular accounts – they push what they are told to push in the morning. Your broker may have no knowledge of how the firm benefits.
3)Underwriting fees – the reason big brokers get big fees for underwriting issues is that they have a large supply of suckers (clients) to peddle the shit to. They even make you feel privileged to get in on the offering!
4)Relative performance – they talk alpha, beta, PEG ratios, R-Squared, “Modern Portfolio Theory”, etc. But never absolute performance.
5)Finally, THEY NEVER CALL YOU TO SELL UNLESS IT IS A MARGIN CALL.

If your broker/investment advisor/peddler was really knowledgeable about the market and the economy, they would have called you between May 2007 and September 2007 (the light bulb would have lit at different times for different people) and told you to SELL

Sure, you would have missed the October 2007 highs, but you would have not suffered the 30% to 40% loss most of their clients did.

I got out before October 2007 (in steps between June and late August) because the world was awash with debt. It has turned out to be much worse than I feared.

At least Reggie has found a way to profit from this market.