The other day, the folks at the North American Securities Administrators Association (‘NASAA”) issued a press release: NASAA Cautions Investors Not to Stumble When Interest Rates Fall Flat (February 1, 2012). After reading the release, I feel pulled in two diametrically opposite directions when trying to write this column. There’s a lot of good stuff in the release, but there’s also a lot of bad stuff. I start off with “On the one hand . . .” but inevitably swing over to “On the other hand . . .” So -- let's get on with it.
On the One Hand
On the one hand, NASAA issues an absolutely valid, worthwhile, and intelligent warning:
Following the Federal Reserve’s announcement that interest rates are expected to remain low until at least late 2014, the North American Securities Administrators Association (NASAA) today cautioned investors to beware of risky or outright fraudulent investments promising higher yield or returns.
That’s truly great advice – and couldn’t be more timely! Kudos to the state and provincial regulators at NASAA!
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