Sweeping changes have hit the financial services industry at the same time as more and more Canadians are turning to professionals to invest their money. Consumers want to work with qualified professionals, but are often left to work with narrow, product-based sales representatives.
People are unwittingly taking risks with their investments by entrusting them to advisers who are biased but don’t know it. Does your financial adviser tell you to hold on and never sell? That markets recover in the long run? Does your adviser seem to always have an optimistic disposition? Do they tell you not to worry, no matter what is going on in the outside world? In Bullshift, John J. De Goey explores the hidden relationship between bias and financial markets. He makes clear that investors and financial advisers are not the rational decision makers that economic theory assumes them to be, and that “tried and true” investment advice is not always sound. De Goey shows that advisers are immersed in a culture of Bullshift — they simply don’t realize how their positive outlook on markets is based on industry-wide groupthink. Unfortunately, this problem affects much more than just your own investment portfolio. After three years of an international pandemic, the full economic impact of the response to it still hasn’t been felt. There’s more pain coming, but the financial industry’s eternal optimism, abetted by government policies designed to consistently encourage growth and avoid tough choices, is walking us toward a cliff for the global economy. De Goey helps readers understand the subtle but profound challenges of industry bias, with optimism bias as a particularly vexing issue. The next downturn may be deeper than anything you or your adviser has ever experienced. True optimism comes from a shift to unbiased realism.
Revised and Updated Over 6 million Canadians control more than $500 billion in RRSP and RRIF investments . . . or do they? Do RRSP owners support an industry that feeds on the fear and ignorance of Canadians ill-prepared to manage their retirement assets? While claiming professional status, financial advisors are salespeople often more closely aligned with mutual fund marketers and bond dealers than with their own clients. What's more, the industry insists on a policy of self-regulation, unhindered by direct government supervision. The Naked Investor sounds a wake-up call for Canadians. Through real-life stories, it exposes the dark side of the investment industry, revealing the tactics of greedy brokers and advisors, voracious banks and mutual fund operators, and outright embezzlers. Written with sly humour, The Naked Investor will disturb both an industry that appears more focused on building wealth for itself than for its clients and RRSP investors whose trust too often is misplaced—with devastating consequences.
Does your financial advisor tell you that markets recover in the long run? Do they tell you not to worry? You need to heed that uneasy feeling of yours. As De Goey makes clear, advisors, like all of us, suffer from unconscious bias, but their sunny outlook is also the product of industry-wide groupthink.
Canadian investors are at risk and they don't even know it. Their well-intended advisors often give poor advice based on traditional approaches that are demonstrably wrong. The fundamental problem is advisor bias, and no one talks about it because virtually everyone is oblivious to it - including advisors themselves. In STANDUP to the Financial Services Industry, bestselling author and award-winning advisor John De Goey arms investors with the tools they need to hold advisors accountable and to navigate an industry that has refused to adapt to a changing financial landscape. In this concise and accessible guide, John De Goey: - Explains how we've gotten to our current state, with misguided advisors providing harmful advice to investors; - Identifies the key problems that are not being addressed proactively within the financial services industry; and most importantly - Helps readers solve these problems in order to make better investment decisions. STANDUP empowers Canadian investors to demand accountability from an industry that has refused to acknowledge its own shortcomings -and helps them invest wisely and successfully.
Sweeping changes have hit the financial services industry at the same time as more and more Canadians are turning to professionals to invest their money. Consumers want to work with qualified professionals, but are often left to work with narrow, product-based sales representatives. John J De Goey argues that financial advisers need to change the way they do business. Instead of earning commissions for placing products, they need to begin charging fees for rendering services. In the process, advisors will be putting the interests of their clients ahead of the interests of their employers and product suppliers for the first time. In essence, De Goey is calling for the professionalisation of the financial services industry. This new edition is updated to keep you on top of recent changes in the industry and is written in a more accessible manner. Whether you work in the financial services industry or are currently an investor, De Goey's book should be required reading. He makes complex issues understandable for consumers, and at the same time, encourages advisors to "do the right thing".
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