Storm Financial letter 5

January 27, 2009

I think one thing your article lacks is the client's role in their own demise. Greed was the motivating factor for entering into such investment positions. They seem quickly to claim they were hood-winked, and I agree that the advice they received was certainly risky, the clients are still ultimately responsible for their investment decisions.

The real warning here should be that investors need to understand what their investments are and how they will work in different types of market situations. Greed and the desire for higher returns carry additional risk.