Wall Street WARZONE
First, Track Hot Fads. Then Invent New “Designer” Funds
by Paul B Farrell, JD, PhD
| Discuss | Print | 4/27/2010

They sure know how to structure new funds that capture the latest fads being chased by gullible Main Street investors who can’t stop searching because their brains tell them they will someday find the Holy Grail, the next new way to beat Wall Street through some new trading gimmick: alternative investments, hedge funds, commodities, derivatives, active ETFs, junk bonds, gold, or anything else that’ll make a commission for greedy Wall Street insiders—while the investor loses again.

Main Street investors should build retirement wealth with a do-it-yourself, well-diversified portfolio of eleven or fewer no-load index funds. Forget about Wall Street and their dazzling array of 14,000 funds, 8,000 stocks, hundreds of thousands of bonds and endless of new products with fancy names that Wall Street cooks up annually to entice you back into their high-cost casino that’s designed to make them more money, not you. Keep it simple. And trust yourself. Remember the trillions Wall Street lost in the last couple meltdowns. Don’t get sucked into chasing the “next big thing: “They don’t have it, and it’s not “out there!” (More)