Martin Weiss - Martin D. Weiss, Ph.D.

One of the most important questions of all …

by Martin Weiss on April 22, 2013

CLICK HERE TO JOIN THE DISCUSSION

Over the past several days, I’ve asked you to give me your answers to several important questions.

It’s part of my personal campaign to give you the best tools available for multiplying your wealth in 2013 and beyond.

The key is, it’s vital that I have an understanding of YOUR investment goals and challenges in order to help.

And now, we’re down to my final question in this series, one of the most important of all …

Is the stock market a fair place?

What advantages do the rich and
super-rich have that you DON’T?

Please click this link and give me your answer now!

Good luck and God bless!

Martin

{ 475 comments… read them below or add one }

Dave April 22, 2013 at 4:58 pm

No it is definitely not, they have an advantage in every respect.

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George April 22, 2013 at 4:53 pm

It is not fair. I am not rich.

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Wayne Hatcher April 22, 2013 at 4:44 pm

It is no secret that big institutional firms have access to the trading super computer housed at the trade center and wired directly into the exchange computers. The influential wealthy either have access to the system or those who do and therefore are privy to information that the little guy just doesn’t have. By the time most of us hear about a trade it has already been ran up by the super wealthy privy to inside information. The best most of us can do is watch the trend and try to get a small share. So. To answer you question. When it comes to pure trading. NO the markets and trading is not fair due to the multi teared level of trading and trading information. Just look at the number of computer generated trades versus the amount 5 years ago. The big traders have the advantage of knowing what is being traded and jump in front of the line before those trades go through the system making the rich richer and the little guy gets the crumbs if not getting hammered.

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Andrew April 22, 2013 at 4:43 pm

Of course it’s not fair!
That’s why we subscribe to newsletters like yours to help level the playing field.

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Herb April 22, 2013 at 4:43 pm

The rich and super rich have major influence because of their wealth. Stock market brokerages and their account representatives tend to greatly favor giving VIP treatment to such people and offer them many attractive investment opportunities not available to ordinary investors. That’s the Wall Street environment.

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Calvin Kropp April 22, 2013 at 4:34 pm

I believe the market is rigged in favor of the rich and the bankers. I am retired and it is difficult to find ways that are safe to keep ahead of the game. I think Bernake is keeping interest rates low to keep the banks afloat.. But it is hurting the little guy like me.

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Denis P Murphy April 22, 2013 at 4:28 pm

They can withstand losses better as usually they can BUY extra good advice, but it is not always the case as some v/wealthy people DO NOT LISTEN—they know it all!!! The average person has to be on their toes,and not take on any unnecessary risk that they can’t handle.

Denis (an optimist)

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james a. ward April 22, 2013 at 4:22 pm

Your job is to provide us with the infomation to help us make sound investment decisions ,I self direct my assets and rely on your input to make decisions that will increase the value of my assets. Keep up the good work.

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JP Sevedge April 22, 2013 at 4:22 pm

I do believe the wealthy have an advantage in the market. They have contacts I don’t have, they have inside information I don’t have, and they understand trading secrets that I don’t.

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don April 22, 2013 at 4:15 pm

they have the inside info

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J A April 22, 2013 at 4:14 pm

They have intimidation, manipulation, and legislation, the last one being the REAL golden egg.

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jacob.j.k. April 22, 2013 at 4:13 pm

money and with that, better information & better connections.

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douglas l. lunquist April 22, 2013 at 4:09 pm

yes

rich know rich peole.

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Roger April 22, 2013 at 4:04 pm

it is not for the little guy. you have to have good advice, or be a senator or congressman , then you can make big money, otherwise it is like going to the casino.

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Dick April 22, 2013 at 4:00 pm

First, I’d like to correct something said earlier. There is not necessarily a loser for every winner. Since its inception the stock market, on average, has risen faster than inflation, so I can only conclude that there have been more winners than losers, or to put it another way, there has been more money gained than lost, on average.

Secondly, I’d like to complement the Weiss organization for this very unique way of getting feedback from your subscribers. Very grateful.

As to your subject for today, this is the only of your questions that I don’t have an answer and look to folks like you for answers.. I have two comments:

1. 30 years ago we could look only at financial conditions in the US to make our decisions. Today we must look at world-wide financial conditions to make decisions.

2. We must diversify our investments, and only a portion of our investments should be in stocks.

I am not really turned on by up-coming Wed web-cast. It appears that this gentleman is going to focus on stocks, and the fact that he is going to tell us the ONE stock that can make us rich, runs against my personal investment objectives.

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tom trussler April 22, 2013 at 4:05 pm

Yes, the stock market is valid, but must be watched. Good to have some funds elsewhere.
I would say the rich can handle a loss easier.

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Jim April 22, 2013 at 4:00 pm

I believe that financial knowledge – education is an asset and the lack thereof a liability.
Not enough emphasis is given by the education system to the subject which should begin gradually, stressing the importance of good credit, the concept of assets and liabilities, sound investment et. al. Alot of educational effort is given with the goal of getting a good job but not enough on keeping – growing the money you make. I do believe the rich have a better opportunity to find and take advantage of sound investments. Money makes money and allows a cushion for the rich to withstand substantial losses the less rich could not.

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Raymond Baxter April 22, 2013 at 3:58 pm

The Stock Market has changed radicly in my 70 years of being aware of it. I do not believe that the average person can now invest with any confidence anymore. There is not enough time for individuals to research stocks on their own and to find a reliable and wise market adviser is nearly impossible. In addition the rate of change in the economy and business environment has accelerated. I sometimes think that a nonagenarian like myself may have lived through the best of times

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Jim R. April 22, 2013 at 3:52 pm

It is certainly not a level playing field. With all the computer-automated trading systems out there, the little guy has no business doing short term trades. However, with intermediate and long term investments and doing one’s homework, it still can work for the little guy.

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Bryan Rendleman April 22, 2013 at 3:49 pm

Too many to list.
They set on multiple boards.
They intermarry Corporations as Kings of old.
#1 advantage is access and switching into government and back into private sector in places of high power and knowledge.

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dan orndorff April 22, 2013 at 3:58 pm

Not level playing field with all the retail stuff. Leading us to slaughter.
Need acess to mlp and acess to preferred.
Need hedge fund transparancy.
Somebody driving market and it is not us and appears to be slot and vegas machine run.
Really Really disappointed.

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GEORGE PLASTER April 22, 2013 at 3:48 pm

money

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Gerry Cabalo April 22, 2013 at 3:44 pm

Certainly more fair than the banks. But if the hedge fund managers accumulate wealth in hundreds of millions or even billions while the little guy is making a pittance in comparison,
you know where the fairness and most of the profits went.

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Richard A. Mackaig April 22, 2013 at 3:41 pm

The stock market is badly slanted to benefit the insiders who get more and better information than the public. Insider trading is rampant and guess what, members of Congress could insider trade, until recently, and there was no penalty! This Country is run by Wall Street and will not change anytime soon due to their overwhelming contributions to election campaigns.

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Bob April 22, 2013 at 3:33 pm

They have the inside information that is why we are subscribing to your services to give us that inside information before the rest of the world knows what is going on.

So Martin you have your job cut out for you.

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Laurel Hon April 22, 2013 at 3:31 pm

I think the stock market is a gamble, though the more well versed you are in your game, the better your odds. I do suspect that there are those very monied individuals who have ‘ins’ that us poorer folk do not. Advantages of the rich and super rich? Anything money can buy. That money also provides a cushion should one of their gambles in the stock market not pay off as hoped or, should everything turn to worms, one would think they would have put enough behind them to not end up homeless or close to it, as so many people have recently. A cushion this not-so-young person is now striving for after losing almost everything.

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William Bissell April 22, 2013 at 3:30 pm

I agree with the others, not fair. Between the good old boy networks with all insider trading and the sophisticated computer programs making so many trades, the average investor is at a disadvantage. Doug Davenport’s approach does interest me though. Otherwise, we’ve been out of the market.

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Bill April 22, 2013 at 3:29 pm

I do not know, to both questions.

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Kathy April 22, 2013 at 3:26 pm

As with most things in life, fair depends on your point of view. I think if you are going to enter into the stock market, you had better spend the time getting a bit of education first. If you treat it as a game of chance and only roll the dice and hope, you may walk away a winner but more often than not, you will have your head handed to you.Either way… you will be taught.

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maurice rothman April 22, 2013 at 3:24 pm

Gentlemen:

The people who make money not in the stock market, but rather “from” the stock market.

Most little people lose their money- for every winner there “must” be a loser, so at least fifty percent of the people, will lose their money. Bad odds of course!

The winners, the stock brokers and their buddies -

The smartest way to make money, watch the graphs, wait for when the stock reaches its peak,
wait for its rise, wait a little longer, then dive in – dont wait for the top or the bottom, play the middle somewhere or if you are a good diviner, use that, that’s more accurate of course!
Do what the Rothchilds did” wait until blood is flowing in the streets, you can lose then, that is when you dive in, clothes and all. A lot of trades support the vultures, wait for the right time, put the vultures out of business.

mrothman

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Lotte G Bahr April 22, 2013 at 3:22 pm

After my husband’s death and the wonderful financial adviser my husband had, our investment disappeared in so-called Limited Partnerships, where the broker received huge kick-backs, only all of them declared bankruptcy while I was still abroad. When I came back to US, all my retirement money shrank to US 15,000.00 which was once over one million US Dollars. I am 70 years old, receive from the US Treasury only a small Annuity. So far I was able to save again, but keep only US $ 30,000.00 in this country. I don’t dare to invest again, because I can not afford to lose the little I have. Nevertheless I enjoy following your advise and reading all I can of what is going on in the financial market.
Thank you again for all you do for us subscriber.
Kind Regards,
Lotte G Bahr

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Ken Hendrick April 22, 2013 at 3:20 pm

The rich are able to buy mutual funds that require high minimum purchases and have much better consistent returns. They also are able to pay for personal financial services management. In many cases, they also have access to “insider” investment information.

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Jim April 22, 2013 at 3:17 pm

I don’t think that the stock market is fair…………….the wealthy probably has more inside information and good connections.

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Art Pillman April 22, 2013 at 3:13 pm

Inside information, connection with government, and connection with lobby groups.

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Robert Jesse April 22, 2013 at 3:08 pm

I believe some will get information before the rest of us. I sometimes wonder if it’s all legal.
The rich can also buy more and better information.

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Augusto Montalvo April 22, 2013 at 3:02 pm

I am looking for fair companies to invest for the long term viz. Warren Buffet. I know you can help. So long.

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Phil April 22, 2013 at 2:59 pm

Market is not fair to individual investors. High Frequency trading has corrupted the market.

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quentin April 22, 2013 at 2:54 pm

“Fairness” seems like an arbitrary measure of sentiment.

Measures directly related to investors’ results would include investment practices when given specific properties and prices of assets, each of which reflect chaotic mixes of measurements.

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david j. juchnik April 22, 2013 at 3:00 pm

Let’s face it the big boys at the big institutions have the inside edge over the regular investor on the street, plus they have lots of money to invest. Dave J. Lehigh Valley

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Paul Van De Walle April 22, 2013 at 2:50 pm

Stock Market “Fairness”? The exchanges that make up the stock market are governed by rules and regulations that evolved over many decades, such that our current stock market is “fair”. No one is forced to buy or sell, and the terms of use are well known and in writing. It wasn’t always this way, but one by one, unfair manipulation tactics and non-uniform rules have been shut down. If an investor thinks he has been unethically or illegally treated, he does have recourse through SEC procedures that do not require outside legal counsel to process. So, in my opinion, the stock market in the U.S. at least are fair.

Does that mean individual brokers, their firms or even the companies that are bought and sold always honest? No, and an investor would have to be totally naive to expect that.

Do the Rich Have Advantages that the Average Investor Does Not? Many have already commented, so my response here is brief: Yes, Yes. Yes!
(1) Contacts, (2) Staying Power, (3) Enough weath to hedgee thru Options, and other means, (4) Info on corporate strategies, even when same is not technically insider information, (5) Political clout and advanced info on what is going to be enacted into law, (6) Financial advisors and analyst to screen, monitor and even execute trades while they are at the club mulling over the larger questions of the world, and how they might take advantage of the view.

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david j. juchnik April 22, 2013 at 3:02 pm

Again, the big boys have a huge advantage over the public, the guys that are on the trading floor and in trading offices I’m sure know when to get in and out of the market, short the market, etc, etc. dave j. Lehigh Valley, PA

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Chic April 22, 2013 at 2:50 pm

The Stock Market is like Farming, it’s a Gamble. Sometimes it rains and sometimes it sun shines, if you hit it just right you will have a good crop and make money.

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david j. juchnik April 22, 2013 at 3:03 pm

The market is almost a like playing at the crap tables in Vegas, one day you win another day you lose, you just hope you come out ahead in the long run. Dave J. Lehigh Valley, Pa

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Ron Janssen April 22, 2013 at 2:49 pm

I am not sure. Large daily or weekly swings in individual stock prices for no apparent reason does not seem rational. I have often suspected high volume traders like hedge funds or even advisory services have the ability to move a market on individual stocks. Combine that with computerized trading and you have the potential to get burned, at least for short term trading. Investing for the long term is much safer and less subject to the daily ups and downs. One of the concerns I am starting to have is that the Weiss followers are now big enough that they can move a market. If you trade the split second an announcement comes out you can do well. If you are delayed even a few minutes you can lose out and are often better off waiting for a couple days until the stock price settles down again. If an advisory service can move a stock, is that a self fulfilling prophecy or a good call?

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david j. juchnik April 22, 2013 at 3:04 pm

You hit it on the head. dave J. Lehigh Valley, PA

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bill April 22, 2013 at 2:45 pm

yes and none.

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M.C. Mai April 22, 2013 at 2:42 pm

It is absolutely a fair place.
The rich and super-rich are able to obtain more and first hand inside story. Plus their stacks of cash provide them with more cushion and leverage for maneuvering.

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david j. juchnik April 22, 2013 at 3:06 pm

Glad you think it’s a fair place, ask the investors that went in with Mr. Madoff if they were treated fairly, and I know that’s an isolated incident, for the most part I guess, I said guess, the market is fair, it’s just a matter of how the dice rolls when you get in and out of a stock, etc. Dave J. Lehigh Valley, PA

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M.C. Mai April 23, 2013 at 7:01 am

Sorry Dave I didn’t reply immediately.
There is no absolute fairness in this world now. My definition of fairness can only be understood as a ‘fair chance’ is available to the mass, example intelligence. No two person in this billions population are the same, but, we can barely say ‘approximately the same’.
Why I agree the market is ‘absolutely’ fair? We have to consider a few issues here
1. The market is based on free will. No one force you to participate.
2. There are enough information and options for you to make decisions by yourself
3. Madoff if one out of thousands advisers available. At the end he is in prison
4. If a person are able to spend enough time, money and attention as did the rich and super-rich, I have no doubt this person will one day become a super-rich.
5. This is a special market. You need to acquire, better say ‘given’, knowledge, wisdom, self-discipline and guts in order for you to appreciate the beauty that exits in it. One thing for sure and ‘absolutely sure’, whoever has these qualities, he will thrive in this field.
I believe the market is fair. It is the person who is not fair to himself/herself. Basically asking too much of himself/herself and from the market.
If you are interested I can elaborate on I mean knowledge, wisdom, self-discipline and guts.
Good Luck

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ROBERT J. MAXWELL April 22, 2013 at 2:41 pm

From my perspective at age 90 I don’t think the stock market is any more unfair these days than it has been in the past. There have always been unsavory aspects in connection with insiders self interests. But, today it has gotten more complicated with Government Involvement with Banking
practices eg. pressure upon them by the Justice Dept. & Fanny Mae to make (uncreditworthy loans) to minority home purchasers who have bad credit records. Also the promotion of investment vehicles such as “Derivatives” The investment community took us for a bumpy ride.

My time frame is too short to make up for mistakes.

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david j. juchnik April 22, 2013 at 3:08 pm

Amen to your comments Mr. Maxwell, if your 20 time is on your side but at 90 hopefully you made a lot of good bets along the way and made a lot of money, God Bless. dave j. Lehigh Valley, PA

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Dee April 22, 2013 at 2:40 pm

I don’t know.

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david j. juchnik April 22, 2013 at 3:09 pm

Honesty is the best virtue. dave j. Lehigh Valley, Pa in response to Dee’s answer

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Sylvia April 22, 2013 at 2:39 pm

I believe that the stock market is not fair. The rich and super-rich have the advantage of their connections with the ‘Big Boys’ and often know in advance which way certain stocks and/or markets are going.
Also since options are becoming so popular, the market makers have a great advantage when pricing options.
Still, with due diligence there are opportunities for making money.

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david j. juchnik April 22, 2013 at 3:13 pm

I think Sylvia has it right, the big boys prevail in the investment world. Yet if your invest regularly and prudently and diversify your portfolio, you have a decent chance of making money in the markets, but again, nothing ventured nothing gained, no pain, sometimes no gain. I say be careful and invest in companies that have paid dividends for years and have a product everyone must have to live, like utilities, food manufacturers, and if you have a long term horizon like 20 to 30 years you’ll hopefully/possibly make a lot of money. dave j. Lehigh Valley, PA

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Paul Van De Walle April 22, 2013 at 5:37 pm

In response to Sylvia, and David’s response to Sylvia, I’d say the stock market itself is a separate, real entity made up of the exchanges that provide investors with a place to conduct business (i.e. trades). If you use the term as an abstraction to mean the whole process of buying and selling, of good or bad research, of major or individual buyers/sellers, etc. then just about any answer you give on the fairness or unfairness is okay, but doesn’t really mean much – it all becomes very subjective based on anyone’s idea of the point of the question.

Notwithstanding, I think both of you have clearly put forth your views on the second question of today. I’d really like to see your viewpoint(s) if you would answer the first question, with the idea of rating the “entity” we have in the U.S.
to provide us an outlet for stock/bond/mutual fund/ETF/options/etc. transactions. Do you think our market is fairly run?

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bill April 22, 2013 at 2:38 pm

none

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Duane Myers April 22, 2013 at 2:36 pm

I don’t really think that the stock market is a fair place. Especially if you trade on fundamentals, common sense, and the news. Insiders and large players almost certainly have more information available to them than small investors. More and more I realize that the only way for me to make money is to trade price action/technical analysis only. Some information may help someone understand a little bit about why prices have already moved.

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Thomas H. Cowell April 22, 2013 at 2:35 pm

The insiders have an advantage over the “litle guy”. For that reason, the market is a “crapshoot” for most people. But, sometimes you can win and sometimes you can lose. Because of the “sometimes you can win” nature of the market it is a really good place (better than the lottery or “scratch-off tickets”) to bet. If you are doing so with your life savings you are foolish–but there is not anyplace else to go to find the returns that you need to retire. If a young person in their 20′s today starts putting 5-7% of his/her money away in a nice, safe savings account. He/she will not have enough to retire on compounded interest in 35 years.

Tom

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ALVIN BOURGEOIS April 22, 2013 at 2:32 pm

Yes, I believe it is as fair as most other things. One must be very well informed to follow the markets changes. There should be a very small fee charged for each share when trading which would stop the tremendous trades that may give the instutions and big dealers a slight advantage.

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ANTHONY CORTESE April 22, 2013 at 2:32 pm

DR. WEISS, I DO NOT BELIEVE THE MARKET IS FAIR, I THINK THEY TREAT THE PEOPLE WITH MONEY BETTER THAN A PERSON THAT HAS ABOUT $25,000.00 TO INVEST.
THE RICH ARE IN BED WITH THE POLITICIANS AND THE WORK TOGETHER SO THEY MAKE THE MONEY AND THE PEOPLE WITH LITTLE MONEY SUFFER.

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gerald novak April 22, 2013 at 2:28 pm

Talk about wealth transfer ? The markets are the best vehicle for that. A large part of my life savings have been stolen from me. Someone ended up with that money. Think about the power these FED freaks have over us. All they have to do is position themselves, then run their mouth with the applicable comments, and instant profits are theirs. They are the ones who should be picketed. They are the real scoundrels not the “rich” who actually earn their money producing a product or providing a service. The ignorant don’t know the difference. These FED creeps are the modern day money changers that Jesus drove out of the Temple. He did not like them and neither do I.

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