Opinari.net
Opinari - Latin term for Opinion. Opinari.net is just what it seems: a cornucopia of rants, raves and poignant soliloquy. |
Friday, September 12, 2003
Caveat emptor.
This applies to everything you buy in life, not just with eBay, or used car lots, but now... mutual funds. The SEC is investigating several fund companies (some of which I have given investments), after state attorney generals like Eliot Spitzer filed complaints. Spitzer is vigilant in such matters; apparently, the SEC is not. MSNBC reports that the SEC knew for nearly six years about fund pricing schemes, yet did little.
If you own a 401k, a Roth, an IRA, or any other investment vehicle that relies on managers to serve as custodian, this should anger you. On the one hand, the managers take advantage of loose rules, and international time differences to speculate upon, and time the market. This results in greater fees when managers must recoup losses. On the other hand, the SEC shows yet again it serves the interests of... well, anyone but the investor.
This is illustrative of another axiom I preach time and time again - you cannot rely on government to fix things. You are probably taught such reliance from birth, but it's a fallacy. If you fear that your investments are being leveraged by unscrupulous managers, you had better read the prospectus, monitor any fees and commissions, and don't be afraid to move your money if something doesn't seem right. The only power the investor has is not the power of the vote, but the power of the dollar.Labels: Archives_2003
.: posted by
Dave
11:53 AM
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