This is a review of the Ken Moraif / Retirement Planners of America (formerly Money Matters) radio infomercial as heard on KABC in Los Angeles.
I will be posting a spreadsheet link shortly for anyone who wishes to peer review my estimates regarding Moraif's market timing performance.
Bob Brinker is the only "financial advisor" to subscribe to. You never lose money with him. Moreif always gets it wrong and charges you out the wazoo in on going commissions and fees.
4:36 Amazing statistic about 50% market drops; only 3 since 1928, and 2 of those since 2000. Playing the Moraif infomercial was genius.
Well who else has free workshops where you can get free oatmeal raisin and chocolate chunk cookies that melt in your mouth?
One of the most clever market "gurus" I ever read about was a guy who operated about 30-40 years ago at this point. Anyway, his angle was to to make a pick on some commodity or index and send out his prediction by letter to a bunch of people at random. Half of them would get a letter that the index is going to higher, the other half would get a prediction that it would drop. For those who received the correct prediction, he would send them again another pick on a different commodity and again half the letters would say it's going up and half down. He repeated this process like a dozen times and each time the people receiving the prediction would be only those where his prior pick had been correct. At the end of the process he would invite the small remaining group of people who now thought he was a market genius to send him funds to manage (which he would then appropriate or squander). Not sure what happened to him or how he got caught, but always thought it was a clever swindle and it definitely enriched him even though it impoverished his victims I am sure. Anyway, the point is there will always be someone out there who comes up with some type of ruse to take advantage of people and their ignorance. Whether it's a Ponzi Scheme, a market timing scheme, doesn't matter. If the pitch is good enough and seems convincing, some percentage of the people will absolutely fall for it.
Timing the market has been rebranded by "advisors" as "tactical management". I guess that is more sexy. What these clowns never tell you is that the majority of market gains occur on a very few days in any given year. So if your on the sidelines then you miss the upside. I wonder if there are any studies that illustrates that.