THE INDUSTRY WITH THE WORST PRODUCTS

In today’s economy, we have so many companies that make terrific products. Automobile companies make some great vehicles. Technology companies make some amazing products. Pharmaceutical companies make drugs that save millions of lives. The products that these and other industries create continue to evolve and improve over time.

The financial services industry is the ninth largest industry in the world, The financial services industry in the United States alone represents about 8% of our Gross Domestic Product – about $2 trillion. Financial services companies employ about 8 million people in the US, and they hire some of the best and brightest from the top schools across the country. They utilize the most sophisticated and powerful computers and software that exists.

Despite all the assets and strengths of the financial services industry, I contend that they offer the worst products of any industry. I have been an investor for 40 years and the investment products available to consumers today have changed very little over that time.

Technology has changed the speed and the costs of trading financial products and allowed for the introduction of index funds and exchange traded funds in the last 30 years. While these advancements have increased efficiency, they have very little impact on the results of individual investors. Blockchain technology which supports cryptocurrencies is an impressive technology innovation, but no one understands the value of cryptocurrency.

The financial services industry introduced their prized asset-allocation strategy in the early 1950s. Asset allocation didn’t work then, and it doesn’t work now.

It isn’t fair to blame the financial services industry for the irrational behavior of financial markets. Financial markets are irrational because we humans who trade the markets behave emotionally and irrationally.

But I think it is fair to blame the financial services industry for the lack of safe and effective investment vehicles available to ordinary investors today. All financial services companies advertise about their ability to help people successfully navigate the irrational financial markets. They are constantly promoting their sophisticated solutions and capabilities.

How did those solutions work out for you in 2022? Or 2008? Or 2001? Do you feel that your retirement accounts are protected if the economy enters a recession this year? Will your investments be protected if inflation increases again. How confident are you in your investment strategy? Will your results be better the next time markets crash?

I think I know the answers to those questions.

In our business, we see the results of the weak and confusing solutions offered by the financial services industry. We see conservative investors who have cryptocurrency investments in their IRA accounts. We see inexperienced investors with commodity investments in their retirement accounts. We see experienced investors with over 50% of their retirement funds in cash accounts. We see other investors who have their funds spread across a dozen different investment assets that they barely understand. We have smart customers, and the financial services industry has confused and frustrated all of them.

Invariably, the unusual investment strategies of our customers are the result of working with several ineffective investment advisors. In many cases, our customers were forced to react to the poor results of bad investment advice.

The bad advice did not come from one or two clueless individuals or a couple of bad companies. There are incompetent people and weak companies in every industry.

The lousy guidance came from all the biggest names in the financial services industry. The advice typically originates from the best and the brightest people in the esteemed research departments of the most sophisticated Wall Street firms.

Bad advice and bad solutions are not the exceptions, they are the rule in the financial services industry. Can you name another industry with solutions and products as bad as the financial services industry? I can’t.

It is not unreasonable to expect better investment solutions for yourself and for your family. The stakes are very high. Don’t settle for less than you need and less than you deserve.

The dismal performance of the financial services industry motivated me to solve this big problem. I was forced to take matters into my own hands.

I created the Market Signals product to provide all investors with the ability to achieve better than average returns AND protection against market collapses. We have been told by the financial services industry that higher returns are only possible with a higher risk for losses. Not true.

We achieve higher returns because we avoid major losses in market meltdowns. Losing less money in bear markets actually leads to higher returns. It’s basic math.

If you are not already a subscriber to our Market Signals newsletter, click here to learn about a better and safer way to invest.

Happy Investing,

Phil

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Disclaimers *The Beyond Buy & Hold newsletter is published and provided for informational and entertainment purposes only. We are not advising, and will not advise you personally, concerning the nature, potential, value, or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Beyond Buy & Hold recommends you consult a licensed or registered professional before making any investment decision.

Investing in the financial products discussed in the Newsletter involves risk. Trading in such securities can result in immediate and substantial losses of the capital invested. Past performance is not necessarily indicative of future results. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, and market dynamics.