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Lessons from the Crisis

As a kid, whenever I was not happy with something done by somebody else, my mother used to say: the best way to get what you want, is to do it yourself.Maybe it starts to trickle down now that I lost money in the current downturn. Trusting my adviser that the unit trust he was proposing me had a strong track record to provide financial returns turned out to provide large negative returns to put it mildly. It is still far away from what investors lost with Madoff, but still… Obviously, I am not the only one to be unhappy about the stock market and Unit Trusts performance, but I should have known better. I should have questioned the fund manager’s strategy, the market fundamentals, why one geography or industry is better than another, what the diversification benefits are, etc. But here is one thing, these questions are pretty annoying to advisers, but they are predominant before investing! That is where my mom comes into the game, if you want the best out of it the way you like it, do it yourself, or

 

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