Today's financial landscape and what Wall Street doesn't want you to know
Rigged Money is based on one simple truth: Wall Street needs money from Main Street, not the other way around. The financial industry has convinced the general public that investing across different asset classes is the only way to protect wealth, but this is an outdated rule that no longer applies.
Since asset classes small caps, large caps, international investments, gold, and bonds now overlap when it comes to risk and volatility parameters, the diversification effect is gone. That's exactly what Wall Street doesn't want you to know that the rules of the game have changed.
Risk Isn't Constant: Pie charts lie when it comes to accurately describing the risk of stocks and bonds
Dividends Are No Silver Bullet: They are designed to entice investors rather than to increase a company's value or your net worth
Buy and Hold is Dead: The financial world (and all the companies and securities in it) moves too quickly and is changing too often for this theory to hold true today
Gold Is Not an Investment: Gold is today's currency of fear, and this fear is driven by escalating government debt
An unflinching look at this new financial world, Lee Munson's Rigged Money arms today's investors with the simple, smart, and clear advice needed to level the playing field.
Lee Munson worked as a speculative traderduring the dot-com boom and bust until he had an epiphany and began to question everything about his approach to investments. Realizing that Wall Street is a game that isn't always played to give investors a fair chance at winning, Munson went on to form an asset management firm, Portfolio LLC, in New Mexico that is ranked as one of the fastest growing firms in the country. A frequent guest on CNBC's The Kudlow Report, he is a contributor for TheStreet.com and is quoted in numerous financial publications such as the Wall Street Journal, SmartMoney, and the Kiplinger Report.
Preface xi Acknowledgments xvii PART I Old School . . . of Thought Chapter 1 Buy and Hope: The Scam? 3 Blame the Dutch! 5 All the Wrong Moves? 7 Time Is Not on Your Side 14 My Dinner with Burton 19 Chapter 2 Lie of the Pie 23 Today s Outrage: Pie Town 23 The Original Pie Crust 26 Breaking Eggs, Then the Entire Kitchen 29 So, What Is Next? Risk Budgeting! 34 PART II Wall Street: The Set Up Chapter 3 Mayday 43 How the SEC Let the Dogs In 43 Mayday, We Have Soft Dollars! 45 Soft Dollars 47 Death of the Stockbrokers 49 Short History of Advice 51 Avoiding Fleas 55 Chapter 4 Research by the Pound 57 Research by the Pound 64 The Report Trail 67 Chapter 5 401(k): Gun to Your Head 71 How We Became Traders 72 The Mutual Fund Supermarket Is Born 76 No Stockbroker Is an Island 80 Chapter 6 Liquid Casino 87 Liquidity Is God 87 Why Dark Is In 94 When the Lights Go Out 97 PART III Surviving the Rigged Game Chapter 7 How Wall Street Sees You 101 Is That Really What You Want? 101 Taking a Strong Opinion Too Far? 104 Cramer Is Driving Me Crazy 106 How a So- Called Pro Fools Himself 108 Other Distorted Images 109 Chapter 8 ETFs: Fact or Fiction? 113 Selling the Sizzle 116 Getting Down to Earth 118 The Audit Part I: Sectors 119 The Audit Part II: Grain Wars 122 The Audit Part III: Junk Is Garbage 125 The Final Audit: We Have a Winner! 127 The Virus Goes Airborne 130 Chapter 9 Gold Is Money 133 Historical Use of Gold 137 Gold Is Standardized 142 Control versus Live Free or Die 144 Brave New Non- Pegged World 146 Chapter 10 Options: Really? 149 Do You Want Them? 149 Practical Strategies 151 Chapter 11 Dividends: A Conundrum! 157 The Pitch 158 The Early Days 160 Growth Breaks Out 164 What s Next? 167 Chapter 12 The New Scam 169 How Did We Get Here? 170 History Repeats Itself 173 Further Down the Rabbit Hole 179 Credit Unions 185 Corporate Credit Unions 188 Afterword 191 Notes 193 About the Author 197 Index 199