Mr. Monski:
Having read your several last posts, I think I see what is going on. This is my last attempt to clarify things for you.
1. We both agree that it would be an unsuitable investment for an unemployed senior to invest their $100,000 life savings in QQQ.
2. I am not suggesting that DATEK would advise such an investment. As far as I know, DATEK doesn't make any investment recommendations.
3. We also agree about the what-if gains. In my jargon, its called an issue of proof and it is a frequent problem that pops up. Especially in the situation where a trade fails to execute and the broker is blamed for the profits that would have been made, if the profits from ABC had been invested in MSFT.
Still, there are circumstances in which the proof is sufficiently clear that the investor should be be made whole. (Example: Investor calls broker on recorded line and instructs broker to sell my 100 ABC when it hits 52 and buy 100 MSFT with the proceeds at 50. Broker says that is not suitable for you. It is high risk. Investor says I understand, but do it. Broker says your order is in.
An hour later the ABC order becomes marketable, but the fails to execute. An hour later, during which hour the ABC order remained marketable, the MSFT order also becomes marketable. It is not executed.
Ten minutes before the close, the little old lady from Pasadena calls broker and says she is so excited, she just saw the quotes on CNBC. Lets sell the MSFT. MSFT is then 2,000 bid at 61. Little old lady thinks she just made $11,000.
Broker says, Oh heck, I am awfully sorry but I goofed lady and never sold your ABC. Anyway, you haven't lost anything because ABC is still at 52.
4. I also agree that a great deal of people should not be investing without the assistance of an investment professional, albeit a broker or financial planner of some sort.
5. Had the senior loss 10% on QQQ, I wouldn't sue DATEK but would consider suing the financial professional that advised the play, if she had one. To my knowldege, DATEK does not make investment reccomendations. |
