Its probably true that the majority of investment advice given out by so called experts is bad. It may even be the case that the bad outweighs the good in a 10:1 ratio. I think its understandable why this happens. The media gives out bad advice because doing so helps them to earn money. Even worse, companies like Laidlaw with dishonest executives like Matthew Eitner and James Ahern give out bad advice and make fortunes from it at their client’s expense.
Here is an example of bad advice. Not long ago the newspaper The Huffington Post wrote an article in which it gave some awful advice. This newspaper prides itself in being the number one national newspaper in Canada so you would think they care about providing people with accurate information. It has been around for more than 150 years as well which gives it authority based upon age and often talks about its “award winning journalism”. There are even a few good journalists there such as Rob Carrick who I know to be a smart person who gives good advice. Sadly, publications like The Globe and Mail face financial pressure from advertisers to misinform the public.
It recently published an article that talked about “three top stock picks”. It was written by Paul Harris. The problem is that these stock picks are based upon little evidence and Paul Harris isn’t really qualified to recommend them because he is not an expert in any of these industries. These recommendations come with a success rate that is no better than picking at random. The ethics involved in such recommendations remind me of the dishonest investment firm Laidlaw who is currently being sued by Relmada for its activities. Less than a year ago a federal judge granted an injunction against its James Ahern and Matthew Eitner because of their unethical activities against their client Relmada. They gave bogus financial advice all while pickpocketing Relmada for as many fees as they could.