Buyer BEWARE

Financial education has been a hot topic for a while now.

How do we best educate the masses about the different type of financial instruments that are readily available out there? We have our traditional investments, such as stocks and bonds. We have our alternative investments, such as ETF’s or Hedge funds for example.

We have different types of mutual funds, segregated funds, Index linked funds, Index linked GIC’s and the list goes on and on.

I haven’t even begun to talk about financial engineering, or high frequency trading, or even dark pools. Then we traditional money managers which provide managed services and then we have discount brokerage services, which essentially take the money manager out of the equation and allows you to directly invest in the market without an advisor.

You also have Robo Adivising. Which is basically an algorithm telling you where you should best invest your money based on a series of questions which is supposed to understand your risk/tolerance.

Let’s throw into the mix ICO’s.

If you took a stroll down the street and asked a random person about ICO’s or Crytpocurrency I am sure they wouldn’t know what that is. When you are investing in ICO’s you are essentially investing in an idea based on blockchain technology.

Blockchain technology is supposed to remove that intermediary, middle man if you will that we are all used too. You are buying into an idea, that is all. And you are hoping that this idea takes off and does well compared to other ICO’s out there.

If it does you cash out and make tons of money, if it doesn’t, well you don’t.

Basic finance, the higher the risk the higher the reward.

Buyer Beware.

Know that this is an unregulated environment. There are exchanges that are shady, and there is a high potential for scams. That was pretty much the case for anything new to be quite honest. My point for this blog is that there is a reason we say “buyer beware”. Let us not forget that we have to do our due diligence. If something doesn’t feel right, then don’t do it.

Let me know what you think.

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