At first glance, with an almost constant stream of media reports of large losses attributable to fraud, highly speculative trading and questionable advice/promotions by well-known, highly visible personalities, it may seem so. These incidents gained more attention because of social media, but that doesn’t mean that they’re happening more often. Moreover, easy access to a broader audience, gives scammers a significantly greater opportunity.
In addition, modern technology makes it much easier to make potentially bad choices. Who would have thought that you would be able to engage in casino style gambling on your phone?
Investors and individuals should remember the old adage, if it seems to be too good to be true, it probably is. The best defense is increased vigilance and consulting with your advisor(s) before making material commitments.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA