The financial advisor next door

When people I know see their RRSP and mutual fund fall 20%, what do they do? They seek my advice. It has been a recurring theme at work and in the personal friendship I maintain to a point where I have to adit. I am better than the norm at managing both financial strategy and tactics.

Still, the first warning I gave most people is always this: “I’ve lost money in this market and I am doing things against my own advice because I want to try and beat the market. Trial by fire is the best way to learn.” This reputation didn’t build up overnight though. I think it started with my last year’s prediction of a company layoff, February’s worst case scenario coming true and more recently predicting bank failures a week before they happened. (Although the last two: National city and Citigroup did not fall and I don’t believe they will fall now that correct measures are in place).

Most of them just want to know how the interest rate will probably play out in the next few years while others seek understanding in all the fancy terms used by financial experts most just can’t trust their financial advisor who told them to hold their mutual fund.

For those lucky enough to seek my advice a month ago, I’ve already told them to sell everything. For those who asked me recently, I told them it’s too late to sell. Whether or not they did it or not does not concern me.My only concern is being able to provide the most accurate deduction based on psychology and technical analysis to anyone who asked without prejudice. These advices are accurate up to 50%. Because I am assuming that no new measures will be put into place. My predictions will only come true when the government do not intervene.

It really made me wonder who you can trust in this world. If I am actually doing better than some of the top investment bankers in wall street, what does that say about their judgement and high IQ? During these time, you cannot rely on anyone’s advice. The big question is: “Should I sell?”. Everyone you ask will want you to hold because they have their own stake in your money. These financial advisors need you to keep your money in their fund so they can keep their job.

I will ask you: “What’s your situation?”