A Culture That Encourages Misconduct?
When I started writing books about a decade ago, I took the position that no one should rely on a broker for financial advice. My reasoning was simple. I had never met a broker who recommended a globally diversified portfolio consisting solely of low-management-fee index funds, exchange-traded funds or passively managed funds. It was my view then and now that this is the only intelligent, responsible and evidence-based way to invest.
I also couldn’t understand (and still don’t) why anyone would entrust their life savings to brokers who don’t have an obligation to put the interest of their clients above their own. It made no sense to me that brokers are allowed to have undisclosed conflicts of interest they can resolve in their favor.
Read the rest of the article at The Huffington Post.