Study Suggests Investment Advisers Often Act in Their Own Interest
Many investment advisers reinforce client behaviors that are in the advisers’ best interest, and fail to discourage financial errors by investors. These findings were reported in a working paper published by the National Bureau of Economic Research. The paper grew out of research at Harvard University, MIT and the University of Hamburg. In the study, auditors went on 284 client visits in which they gathered information from advisers. The auditors presented one of four investment strategies: Chasing returns by attempting to beat the market via identifying industries that performed the best in the recent past; Allocating 30 percent of their portfolio into...
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