Investment Practices – Let’s Look Behind the Scenes

Big Rock Candy Mountains

This song described a place so wonderful, yes even perfect, to this kid as it played on the radio decades ago. For those who don’t recall; the song is about a place where “… a bum could stay for many a day, and he won’t need any money… ” Here’s part of a verse for old times sake: “… Oh I’m bound to go where there ain’t no snow, where the rain don’t fall, the wind don’t blow in the Big Rock Candy Mountains… “

So why is an investment adviser writing about some old song? It’s part of our human nature to want an ‘ideal’ place or existence. We hope we live in a safe place where we feel protected. NEWS FLASH! I’m sorry. It isn’t always so.

We live in a wonderful free world. Our government does keep us safe. However, we also live where greed, and the pursuit of frivolous wealth is rampant. To think we live in a land of saints is naive. So when your investments look like “Big Rock Candy Mountains” where the returns just keep piling up – then look out.

Look out for the smart and powerful people who can find ways to skim off excessive profits especially when they don’t deserve them. Ted Turner, the founder of CNN was interviewed on CNN today (Nov 11, 2008) and this is one part of the interview: CNN interviewer asked Ted: “… You lost $7 billion when the dot-com bubble burst after the Time Warner-AOL merger. How did you not see the dot-com bubble bursting? How did you not see that that was all built on air… ? Ted Turner: “… Maybe I did, but I was on a board of directors and a founder, and I was concerned about the AOL merger, but we didn’t know that the books were cooked. We didn’t do enough due diligence… “

We little guys aren’t the only ones to not consider to the whole picture. To be honest I didn’t realize how much the books were cooked either but I was sure the dot.com stocks were built on air. I knew that bubble would burst. Whether it was ‘dot-com’ in 2001, the ‘mortgage melt-down’ 2008 or any number of other stock shocks you’ll usually find a crook (book-cook) or two behind the scenes. Being gifted with a strong faith to hold me steady in normal times, and a mind that is suspicious enough to keep me wary of snakes in the wood pile has helped me keep my investment customers safe. During the two last market down-turns that saved them a decade or more of savings from being lost. God willing, I plan to keep working for another 10-15 years and hope to keep your investments safe. If you have faith that I will do that then please tell your friends to follow my blog so we can help them also. Look forward to more articles that focus on the behind the scenes business practices that aren’t always beneficial to consumers.

Enhancing lifestyles regardless of what happens in an uncertain world.

Gordon Hughes CFP

Gordon Hughes, Enhanced Lifestyle Planner and Certified Financial Planner

Gordon+ has over 30 years experience in banking and financial services industry. He shares his awareness of behind the scenes practices that work to the advantage of banks, investment houses, and big business in general but seldom benefit consumers. He also shares insights into how to improve your financial health and wealth without worry and stress. Give a F R E E eBook to a teenager or young adult. Help them to appreciate the value of money and avoid common financial mistakes. They’ll appreciate it.

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