I'm a member of a respectable investment club that's been around for over 20 years and I've made some money with them by buying stable stock that, over time, has gone up in price. The membership costs me about $80/yr. and it's been worth it.
Once in a while, some of their distinguished members send me offers on how to purchase stock with very high returns. My concern is that these subscriptions cost $1500, even though they have a 90-day free trial (I don't like it, they return my money). According to them, this "exclusive intelligence" will generate hedge fund returns.
So generally speaking, are these "exclusive strategies" real? Or are they rip-offs?
I can understand that there's no such thing as a free lunch, but I'm assuming that, since they're a reputable company, they are not planning to rip me off.
Any help is appreciated.
Thanks.
2007-08-24 18:12:28 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
Assume everything is a fraud unless their record is documented by a reputable service like Hulbert's. What time frame are these 100% returns promised? If it's real short-term, they must be trading options, which will hit some big winners but will also have some heavy losses, or else a whole lot of losses if they use a tight stop-loss system. If they're claiming 100% return per year consistently then they're lying.
Some of these newsletters are run by reputable companies, but they lie with statistics. They recommend super-volatile penny stocks that double and triple but then give it all back, and they base their "record" on the highest price the stock ever sold for. The slimiest ones with enough subscribers will recommend thinly traded stocks so the subscribers drive up the price as they pile in.
2007-08-24 18:26:11 · answer #1 · answered by Houyhnhnm 6 · 1⤊ 0⤋
Ask for a complete track record. "If I had faithfully followed your advice for XX years, how would I have done?" I've never gotten a straight answer to that in 30 years, meaning that they either don't know (unlikely) or don't want to talk about it. Usually you get some fuzzy language about "depends on your goals blah blah...". "Exclusive intelligence".....hmmm.
2007-08-24 21:50:35 · answer #2 · answered by ZORCH 6 · 0⤊ 0⤋
Send me the money I will invest it for you, you can't lose.
2007-08-24 18:19:03 · answer #3 · answered by shipwreck 7 · 0⤊ 0⤋
check this link its good
http://buyingandsellingshares.blogspot.com/
.
2007-08-27 03:42:24 · answer #4 · answered by Anonymous · 0⤊ 0⤋