There are thousands of newsletters that you can subscribe to for stock buying and selling advice. They even text you when it is the right time to buy/sell. One service in particular offers an example of a site that you might want to think twice about before subscribing.
Of course, the radio spots and the website talk about huge returns for their subscribers. They claim these traders are the best of the best. The website also claims today that they have a year-to-date return of 41%. A radio spot says 300% for 2022. However, if you look closely at the section appropriately called “DISCLAIMERS” (SHOULD BE LABELED “WARNING”), you see a completely different story. Here are some of my favorites from the disclaimers page.
"This material is for information, entertainment, and educational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, hold, sell a security." - Yet they send text alerts telling you to buy and sell a security.
"No recommendation or advice is being given on this site. No investment recommendation or advice as to whether any investment is suitable for a particular investor."
"It should not be assumed that any investment in securities, companies, sectors or markets identified and described or discussed herein will be or were profitable." – Are they claiming they are profitable or not?
"Any views or opinions or comments cannot be relied upon for investment decisions. They are not the opinion of the Company as a whole."
"You should consult a licensed securities professional before making any investment decisions." – What is the purpose of paying for a subscription?
"These are not the returns of an actual fund or portfolio of stocks." – So, they didn’t make 41% year-to-date as they claimed?
"From time to time the executives or employee’s or affiliated parties may be selling or buying the same securities in personal, corporate, trust or other accounts over which they have authority to trade and these trades may not be precisely at the same time as the Carnivore Trading Portfolio is “trading” in or alerting its subscribers to."
- If they were licensed investment advisors, they would break securities laws.
"By using this site you agree that your results are 100% your own, that you have done your own due diligence or had a securities professional do it for you, and that in no way are we directing you as to what to buy or when or in what amounts, and that those decisions are yours and yours alone as are your results." – Once again, what is the purpose of the newsletter?
"You understand that investing in the stock market carries risk of loss and that in no manner have we led you to believe otherwise." – No, the 41% or 300% return claims are not misleading at all……
It is completely unbelievable that these newsletter services get away with this deceptive marketing. BE CAREFUL!
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