FINANCIAL FILE
The financial services and investment
management business
does the public a great
disservice by promoting concepts that are
just not true. As a consumer of these services,
you should be aware of some of the
most egregious examples of falsehoods the
industry uses to get you to buy their products
and services.
Predicting the future
A common myth perpetrated by those in
the finance industry is that they (or the bigbrained
people in their firm) know what is
going to happen in the future. It is extremely
seductive to hear someone tell you what’s
going to happen with complete conviction.
Overconfidence and certainty are two of the
biggest reasons for losses in today’s markets.
Intelligent investors know that there are no
100 per cent certainties, only a range of probabilities.
Beware of anyone who makes bold
promises or uses words like “never” and “always”.
Did any of these prognosticators see
the following events in 2015: near zero interest
rates, $35 oil, a crash in the value of
Canadian preferred shares or a NDP government
in Alberta? I imagine not.
Financial
Falsehoods
Debunking common claims
investment professionals use
to win your business
BY CHET BROTHERS, CFP, RFP,
BROTHERS AND COMPANY
saskheavy.ca | Quarter 1 2016 | Think BIG 53
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