Ok, if that is what this Glassman guy is selling, that is absolutely too good to be true. I could "invest" $10,000 today and be guaranteed my principal back in five years, and be guaranteed the gains of the market if the market is up. OK, here's what you ask yourself when you see something like that:
Would anybody in their right mind take the other side of that trade? Is there any portfolio I could buy or short which would hedge my exposure to offering you a guarantee like that? What if I shorted the market, then sold you that security? If the market goes up, I lose. If the market goes down, I lose. How about if I go long the market. If the market goes up, I'm even, if it goes down I lose. Basic logic tells you that there is no hedge in between. What this tells me is that you are looking at a scam. This Glassmann guy is not in this to lose money. So check the fine print very carefully.
Jim |
