Sunday, July 24, 2011

Enter the Dragon (Money Matters with Ken Moraif)

Sell signal?
One of Ken Moraif's clients (or former clients) sent me an email that was sent out by a member of his gang named (no, I did not make this up!) Eli Dragon. As hilarious as that is, when you check him out on the SEC's database, he also used the name "Butch Dragon" at some point. That, in itself, is more than enough to make me question his judgement.

And, speaking of judgement, the email reveals some interesting information about the portfolio management process at Money Matters with Ken Moraif (we'll call it MMWKM from now on so that I don't have to type it and you don't have to read it). Market timing is an idiotic way to manage client accounts, but there are degrees of idiotic. In my position, I am approached by money managers constantly and they are all touting their track records. I've had the opportunity to review dozens of real and back tested market timing and tactical asset allocation strategies. They invariably have serious flaws, but one thing that the professionals attempting this type of scheme do is follow a system on a consistent basis. Eli or Butch or whatever his name is, states in the email that the market is approaching the "sell signal", but that "this is not cast in stone and mitigating circumstances may dictate a different course of action". In other words, it's a total guess as to when they decide to buy or sell! This is astounding.

I cannot imagine what they must say in seminars to make people think that it's a good idea to invest with them. Those cookies must really be good!

Thursday, July 21, 2011

Blue Horseshoe loves Kenneth Alfred Moraif

I take back what I said about the SEC not listening.  Kenneth Alfred Moraif (yes, the Ken Moraif of Money Matters with Ken Moraif on the radio) resigned from Cambridge Investment Research, Inc. because the firm received a deficiency letter from the regulators that outlined Mr. Moraif's statements and advertising that were inconsistent with both FINRA and SEC rules and regulations.  What frequently happens in situations like this is the firm allows the individual to resign voluntarily before they have to terminate them.  That may or may not be the case with Moraif.

It's about time!  You can visit the SEC or FINRA website and enter his name if  you'd like to read the report.  There is also some ugliness in there about a client alleging that he changed some answers on the client's risk tolerance on an application. 

Baking cookies just for you!
This, in addition to the overall cheesiness of his show and advertising material should be a good reason to avoid this guy and  his firm.  Add to that the fact the he fancies himself an expert market timer and almost anyone with any real knowledge of capital market behavior would tell you to run from him. 

Sorry about that, Kenny Boy!  Hey, at least you still have that brilliant white smile in your pictures and those cookies ("...we will have our now WORLD FAMOUS oatmeal raisin and chocolate chunk (YES, CHUNK!!) cookies waiting for you.  We bake them fresh right before the seminar so get there early and they will still be warm, right out of the oven.  They will melt in your mouth and the cookie smell will envelop you and take you to cookie heaven!") to use to lure people to your seminars. 

I wonder if the SEC would consider that to be false and misleading.  Has anyone really gone to cookie heaven, Ken?  Or, is that sort of a mythical place like the hall of fame for market timers?