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!

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