Wall Street WARZONE
NeuroMarketing: The 6 “Deadly Sins” of Mutual Funds
by Paul B Farrell, JD, PhD
| Discuss | | 2/13/2010

Occasionally the voice of an investor advocate shines through all the distracting hype and propaganda, if only briefly. “The small investor has never had a better friend than former SEC chairman Arthur Levitt,” wrote Warren Buffett in his endorsement of Levitt’s book, Take On The Street: What Wall Street and Corporate America Don’t Want You to Know. Yet, even with someone of Levitt’s stature, the Wall Street Hype Machine’s relentless drumbeat is so deafening and overwhelming that his message gets quickly drowned out.

What Wall Street really wants are investors acting like the rest of Americans—obsessed consumers with an insatiable need for instant gratification. By constantly stimulating their lower brain functions with Wall Street’s messages subtly inserted in endless misleading ads, educational materials, financial reports and emotional hooks that encourage impulsive actions, spending and living “in the now,” creating investors who are addicted to short-term thinking, and easy to manipulate. (More)