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The number #1 red flag when looking at a financial scam is “You must act now!” This statement creates a sense of urgency for the buyer which entices you to act. Frauds and scams are on the rise of late. I have had clients call in 3 consecutive weeks now about potential scams. The criminals seem to be upping their game. The first fraud was thousands. The last one was hundreds of thousands. Is this a sign of a weakening economy? It could be. If you find yourself in a situation where you are in doubt, you need to trust your instincts. These scammers are out there, and they are smart and have honed these scams down to a science manipulating you based on psychological principles. Keep an eye out for red flags.
Good investing is overwhelmingly just about how you behave. It’s about your relationship with greed and fear, how gullible you are, who you trust, who you seek your information from, your ability to take a long term mindset, long-term time horizon.
– Morgan Housel
The latest “product” – I call it a product but it is really just another Wall Street scam – to come across my desk is Buffered ETFs. Buffered ETFs are another play on your psyche. It’s not a coincidence that I am seeing a daily email barrage for Buffered ETFs in a down market. In a down market, fear rises. Buffered ETFs play on that fear and the promise that these Wall Street firms can protect you and limit your downside.
Here is how Wall Street profits from fear and the Buffered…
