On Finance World Online, you will find information on the strategies and investment approaches that are currently being utilized by investors. We will discuss all of these things with the big picture in view.
We won’t tell you what investment decisions you need to make. We will give you the information so that you are better equipped to do it yourself. Remember, it’s your money. Don’t let someone else tell you what you should do with it. You have to own all of your financial decisions.
Whenever someone is building their portfolio, whether they are a new investor or a seasoned one, it can be difficult to find good investment advice. Often the types of information we get has some kind of a bias or self-interest.
Stock Broker’s Advice
Stock brokers don’t have a financial incentive to get you to buy and hold a stock. In fact, they don’t have any incentive to get you to do long term investing at all. They make their commission when you buy or sell a stock, so in turn they aren’t incentivized to give you the best advice as much as to give you advice that will cause you to increase your trading activity.
That is why many advocate for a fee only advisory system. In fact, many investment advisors are fee based, like Edward Jones and American Express Financial. Some in this industry would go as far as to say that the commission system for investment advice is unethical because they don’t promote giving the most objective advice possible. If you want the best chances of getting objective and independent investment advice, fee based advisors might be the way to go.
Analysts that you see on TV also have their own agendas. Sometimes they are giving advice on a stock that they or their firm owns. In this case they have an incentive to give you advice that will buy a particular stock. That is why more than 90% of analysts recommendations are buy’s.
Now you may be thinking that when an analyst gives a positive report on a company that they own, they are just rooting for their team. But that is not always the case. In some cases, they may have a plan to sell their shares and need the public to buy it to raise the share price as much as possible before they exit.
Similarly there is a lot of so called stock investment advice out there that tout certain specific stocks. Many of these are merely stock promoters and have no interest in giving you legitimate opportunities. Sometimes these are the companies themselves that do the promotion.
You probably have seen it before. These are those once in a lifetime investment opportunities in things like penny stocks that come in on your email inbox and used to come in quite frequently through faxes. Some of these are frauds wanting you to buy their stocks so they can sell you their shares for a profit.
On Finance World
Here at the Finance World Website we aren’t stock brokers looking for a commission. We’re not even fee based advisors wanting your money. We really have no incentive to steer you toward one stock or another, or even to one asset class or another.
That doesn’t mean all of our information or investing advice is a sure thing, because nothing in this business is ever a sure thing. And it doesn’t mean all of the suggestions on this website will be a fit for your specific situation.
Each investor or groups of investors need to find the right investment strategy that will fit their needs and life circumstances. And you can only do that through in depth research and getting professional advice from a registered investment advisor.
Here’s what we will do. We will try to offer the best information that is out there. This will be very generalized information that you can take in as part of your overall research, investment strategy and portfolio development.
Our goal is not to tell you how you should invest your money. Our aim is to point you in the right direction so you can make your own informed financial decision. We will explain what investment strategies people are using and it’s up to you to incorporate that wisely in your own portfolio.
Finance World does not claim to know what will happen in the future with any stock, investment, asset or the economy. Again, we are just wanting to point you in the right direction. It’s up to you which direction you want to go. We just lay it out for you.
We will do our best to be as objective as possible with the goal of being as helpful to our readers as possible. We know that if we provide good information that is helpful to people that you will return to us time and again for more. We want to build a trust with our readers, and we know we can only do that by genuinely offering our best in the information we provide.