If a financial advisor told a client ‘you should lever yourself up to invest 5x your net worth in one undiversified asset’, they would end up in jail.
Really? We jail financial advisors for giving unreasonably aggressive financial advice?
Probably generally not true, you’re right. Even if they are prosecuted, ‘fined’ or ‘barred from the securities industry’ are more likely. I do think legal trouble would be at least very plausible. I’ll edit the parent comment.
Really? We jail financial advisors for giving unreasonably aggressive financial advice?
Probably generally not true, you’re right. Even if they are prosecuted, ‘fined’ or ‘barred from the securities industry’ are more likely. I do think legal trouble would be at least very plausible. I’ll edit the parent comment.