How to Invest Today

It seems true to say, Barnard Madoff is the new Charles Ponzi. Investors put much faith in Madoff and considering the current state of things in the fanancial markets, it is a real shame that this man could betray so many good investors! At this point Madoff Type Stock Scams have really impacted countless people around the globe.

Mr. Madoff used to be a highly respected financier and former chairman of the NASDAQ. He recently admitted to administrating a ponzi stock scam that cost innocent investors over 50 Billion Dollars!

This is the sort of corruption that has ruined Wallstreet and Mainstreet! But for all the investors in the future let this be a text book lesson! We must learn from these kinds of scams in order to avoid this same type of horrible financial lost in the years to come.

The ultimate con artist in world history is a one Mr. Charles Ponzi who invented The Ponzi Scheme in the early 20th century. Like Mr Madoff in the 21th century, Ponzi took all the profits from the top of his money pyramid and left little or nothing for the later investors at the bottom of the money pyramid. It is true that some investors did indeed make money with Ponzi and Madoff but most people did not make a penny.

The striking resemblance of Barnard Madoff to Charles Ponzi is shocking. Both orchestrated a massive fraud that would put them in the history books and in prison for years, no small thing to do even in the world of crime. So at this point some of us are left poorer because of them, but as the saying goes “Experience Is What You Get When You Didn’t Get What You Wanted” and we must learn from this experience because we don’t want to go from Stock Investors to Apple Stand Sales Jobs.

Diversification is the the one and only answer to these criminals because these Madoff Type Stock Scams only work with ignorant stock investors that do not diversify. It would seem to be a no-brainer for investors but the rule should be Don’t Put Every Single Dollar of Your Assets in One Investment Just Because It Looks Really, Really Good! You may end up being very very sorry you did!

Amazing Offers are signs of a criminal stock scam. Mr. Madoff guaranteed big returns on his worthless investments with low risk to no risk. Bells should have been ringing in investors heads but they were not? This is not to say solid investments do not exist, it just means that these kinds of fantastical guarantees that Madoff was offering were truly laughably.

We pay taxes to support services to help us and some tax money goes to The SEC. But in The Madoff Affair The SEC did next to nothing? We all know YOU ARE TAKING A RISK WHEN YOU INVEST and this risk should be under the umbrella of The SEC, but it certainly was not in The Madoff Affair. Madoff scamed large banks savvy stock brokers, people with MBA’s and more, so if you were just a Madoff average investor I would not feel too bad because Mr. Madoff got the best of them. Of course if you were a Madoff Victim there is a great website you can go to for help: bernardmadoffvictims.com

You can keep from being scamed most times by using good research, but the fact is we all get taken for a ride sometimes. Hedge Funds are very risky as an investment so for the individual investor it would be safer to stay away from them. In this economy today to retain your investment captial or have a better chance of keeping your investment captial at the minimum, stick with much safer Mutual Funds, Bank CD’s, or even Gold. The economy may or may not get better soon, so your saftest course in 2009 may just be to leave most of your money in the bank. (c) 2009 William R. Wiedow Ph.D.