They Get a Clean Slate, You Get the Shaft
(This is a follow up article to yesterday's "No One Can Predict the Market" article.) Recently, I got a mailing from a commodity broker (let's call them "Commodity Wizards") touting their managed accounts, where you turn your money over to a commodities advisor to manage, or buy into the equivalent of a fund he or she is managing. The amazing thing was that each one of their five advisors had achieved AVERAGE annual returns of over 20% in the last 3 years. Wow! Where do I sign up? Now if I prepared you correctly in yesterday's article, "No One can Predict the Market," all sorts of warning lights should flash when you read something like that. But assuming that their claim is not an outright lie, how could it be true? The answer is very simple, and it has implications that apply to MANY of the investment claims you hear or read. You see, I'll bet you dollars to donuts that Commodity Wizards did not START with those five advisors. I...