Social Media & Mirror Investing

Discussion in 'Financial Planning' started by Gene E. Utterback, EA, RFC, ABA, Dec 20, 2010.

  1. I'm wondering how many of you saw the article in USA today about social
    media and "mirror investing"?

    Its an interesting idea and I was wondering what you guys thought about it?

    Thanks,
    Gene E. Utterback, EA, RFC, ABA
     
    Gene E. Utterback, EA, RFC, ABA, Dec 20, 2010
    #1
    1. Advertisements

  2. Gene E. Utterback, EA, RFC, ABA

    Guest

    "Gene E. Utterback, EA, RFC, ABA" <> writes:

    > I'm wondering how many of you saw the article in USA today about social
    > media and "mirror investing"?


    Here's a link to the article on USAToday.com:

    <http://www.usatoday.com/money/markets/2010-12-14-socialinvesting14_CV_N.htm>

    I don't have time to comment much now, as I've got to run out the
    door, but an obvious question that comes to mind is one of
    regulation -- in order to make trades or provide investing advice,
    one normally needs to be a rep of a broker/dealer or an RIA.

    Mirrored investing doesn't have some of the same dangers (in particular,
    the custodial ones - no fake statements, etc) as more traditional forms,
    but nevertheless, in practice, the traders one attaches one's portfolio
    to are basically running a distributed form of a mutual fund. It's
    hard enough to do due diligence with registered and regulated mutual
    funds.

    Anyway, interesting article that I'd not have likely stumbled
    across. Thanks for pointing it out.



    --
    Plain Bread alone for e-mail, thanks. The rest gets trashed.
     
    , Dec 20, 2010
    #2
    1. Advertisements

  3. Gene E. Utterback, EA, RFC, ABA

    Don Guest

    On Dec 20, 7:45 am, "Gene E. Utterback, EA, RFC, ABA"
    <> wrote:

    > I'm wondering how many of you saw the article in USA today about social
    > media and "mirror investing"?
    >
    > Its an interesting idea and I was wondering what you guys thought about it?



    "Riding along with" successful investors online has some of the same
    drawbacks as buying the latest hot mutual fund that had superior
    returns last year. There is no guarantte that next year will be the
    same, and often it is worse. Successful investing, especially among
    inexperienced people, probably is more a matter of avoiding pitfalls,
    scams, blind alleys, and excessive fees and charges than it is in
    finding a product that is consistenty profitable or that is just about
    to take off and yield big profits.

    My guess is that the real promise of the internet will be quite
    different. It will educate people about the pitfalls. It will put
    investors in touch with others-- not gurus who will steer them to
    specific investment choices, but rather to people who will inform them
    about things to avoid and how to get the most for their money when
    making choices.

    The internet empowers people to "do it themselves," to act in their
    own best interests, and to accomplish things not previously possible
    because of lack of information.
     
    Don, Dec 20, 2010
    #3
  4. Gene E. Utterback, EA, RFC, ABA

    dumbstruck Guest

    I say let grownups be grownups and not worry about people following
    the wrong guru, or that their trading fees go up. They can use it for
    a small proportion of their portfolio, or follow an impeccable guru
    such as an ivy league university endowment manager. I believe Yale
    endowment trades are quickly provided to students who want to emulate
    it, although not automatically. I would hope a brokerage could set up
    a small-delay pipeline funded simply by their motive to increase trade
    frequency.

    But the practical problem seems to be extortionate advisor fees in the
    current implementations. They only mentioned one brokerage I
    recognized, and I can't see any mention of autotrade on TDameritrade
    site. A deeper google dredges up a trading partner site where you have
    to link autotrade to an expensive newsletter
    https://www.thinkorswim.com/tos/displayPage.tos?webpage=autotradePartners&displayFormat=hide#deets
    . And to save wallowing thru a score of free newsletter trials, you
    perhaps have to buy a newsletter that rates newsletters?
     
    dumbstruck, Dec 20, 2010
    #4
  5. Gene E. Utterback, EA, RFC, ABA

    Chip Wood Guest

    On 12/20/2010 2:56 PM, dumbstruck wrote:

    > . And to save wallowing thru a score of free newsletter trials, you
    > perhaps have to buy a newsletter that rates newsletters?
    >

    Do they have one that rates the newsletters that rate the newsletters?

    Chip
     
    Chip Wood, Dec 20, 2010
    #5
  6. Gene E. Utterback, EA, RFC, ABA

    FranksPlace2 Guest

    On Dec 20, 4:46 pm, Chip Wood <> wrote:
    > On 12/20/2010 2:56 PM, dumbstruck wrote:
    >
    > >   . And to save wallowing thru a score of free newsletter trials, you
    > > perhaps have to buy a newsletter that rates newsletters?

    >
    > Do they have one that rates the newsletters that rate the newsletters?
    >
    > Chip


    Mark Hulbert has a newsletter that ranks newsletters. Here is
    Kiplinger's take on him:
    http://www.kiplinger.com/columns/value/archive/2005/va0222.htm

    Frank
     
    FranksPlace2, Dec 21, 2010
    #6
    1. Advertisements

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. Dan28937

    Free Media Download

    Dan28937, Jul 29, 2006, in forum: UK Accountancy
    Replies:
    0
    Views:
    308
    Dan28937
    Jul 29, 2006
  2. Enda

    Bawatchers now has a mirror site

    Enda, Nov 28, 2005, in forum: Accounting
    Replies:
    0
    Views:
    427
  3. William L. Oppenheim, M.D.

    Investing Accounts Total Incorrect on the Investing home page of M05

    William L. Oppenheim, M.D., Oct 12, 2004, in forum: Microsoft Money
    Replies:
    2
    Views:
    311
    Michael Gordon, MVP
    Oct 13, 2004
  4. Replies:
    4
    Views:
    447
    Guest
    Jun 7, 2007
  5. Replies:
    0
    Views:
    582
Loading...

Share This Page