Exotic investments are created primarily by Wall Street inside players to produce business for themselves, not make up an ideal investment for customers.
One example is a re-furbished fad of the past, selling packages made up of small-loans that borrowers find it hard to get from conventional sources. Investors go for this merely to gain a couple or more percentage points of earnings.
This appeals to unsophisticated investors who take on risk they should never have. (See the Earl J Weinreb NewsHole® comments.)
Thursday, April 19, 2012
Stay Away From Exotic Investments
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