Canadian Financial Advice: Good Intentions, Bad Results
The implications are clear for the U.S. marketplace.
My mother instructed me never to patronize restaurants that featured “home cooking.” If given a choice between them and fast food, she said, go with the fast food. Whatever the chain. As with most mothers, she offered considerable advice, and, like most sons, I initially ignored her counsel. My mistake.
Mom would have appreciated “The Misguided Beliefs of Financial Advisors.” (Juhani Linnainmaa, Dartmouth College, Tuck School of Business; Brian Melzer, Federal Reserve Bank of Chicago; Alessandro Previtero, Indiana University.) The paper examined the investment habits of both Canadian financial advisors and their customers, and it concludes that the advisors heartily dined on their own cooking. Their mistake: They would have been better off at McDonald’s.