Here is a brief excerpt:
It seems that mutual funds, insurance companies, banks, and other “manufacturers” of financial products do not have incentives that align with those of investors. Even so called “fiduciary” financial advisors are rewarded by growing their clients’ assets, which may motivate them to take on more risk than is appropriate. For the average investor, is there anyone that he or she can truly trust?
Well, sure. Most advisors really do have their clients’ interests at heart, certainly all good advisors.
Advisors really do need to ask themselves, “Am I eating my own cooking?” Would I put my money at risk the same way I’m recommending that my clients do? Instead of just throwing 10 percent of every client’s money into commodities, maybe advisors should ask themselves whether they would put all of their own money into commodities.Read the Entire Interview.
Framing the question that way might help them investigate the empirical evidence a little more closely. Reasonable minds can differ, but I personally don’t see it.
In the interview, Zweig recommends reading our other blog Farnam Street -- we couldn't agree more.