Why it is so difficult to distinguish a legitimate multi-level marketing company from a pyramid scheme as hedge fund billionaire Bill Ackman found out in his losing campaign against Herbalife. How Forsage has taken pyramid and Ponzi schemes to a whole new level, and why the regulators can't shut it down. Topics covered include: What are multi-level marketing companies and how most MLM distributors are unsuccessfulWhat is the difference between a pyramid scheme and a Ponzi scheme and … [Read more...]
340 Plus: Asset Allocation Assumption Update, Ponzi Schemes, and Hiring Investment Advisors
In Plus Episode 340, we review the semiannual expected return and risk update for stocks, income strategies and bonds. We review new tools available for analyzing the model portfolios. We answer a member's question on how to avoid Ponzi schemes and discuss what to consider when hiring investment advisors including hedge fund strategies. … [Read more...]
253: Are IPOs the New Ponzi Scheme?
How venture capital–funded startups have run up massive losses while justifying premium valuations using creative profitability metrics. These private companies are now going public allowing early investors to cash out with sizable gains. Meanwhile, these new publicly traded companies are added to equity indices, forcing passive managers to purchase them for their index funds and ETFs. In this episode you’ll learn: How venture capital and initial public offerings work. How many … [Read more...]
248: How to Avoid Investment Fraud
Here are precautions we can take to avoid ponzi schemes and not become victim to investment fraud. In this episode you’ll learn: What are sources to determine the background of individuals and firms who are selling investment products and advice.What is the difference between registered investment advisors, registered investment companies and registered securities.How to analyze performance and fees to make sure they are acceptable before we invest.Why we need to be more wary if … [Read more...]
