DALLAS, April 9, 2002 (PRIMEZONE) -- According to the Security Industry Association, more than 60% of individual investors are very satisfied with their broker and the investment industry. But, according to Richard Sapio, CEO of MUTUALS.com, Inc., a financial advisor and brokerage firm, the entire financial industry needs to be overhauled.
"If the public knew the real story, this rosy satisfaction rating would plummet as quickly as the stock of Enron Corporation," said Sapio. "Virtually all brokerage firms deal with hidden conflicts of interest related to the stocks they sell to the public. Brokerage firms earn millions of dollars of investment banking fees directly from large corporations whose stocks they then turnaround and recommend to the public. And when those stocks fall, brokerage firms continue to recommend those same stocks to the public," he added.
Last year, when Enron stock was plummeting from $80 per share to less than $1 per share, more than 50 brokerage firms were issuing a STRONG BUY recommendation on the stock. According to Sapio, stockholders were getting slaughtered while brokerage firms were being paid millions of dollars for doing business with Enron.
"Paine Webber went so far as to 'allegedly' fire one of its brokers for warning his clients of impending doom at Enron. Paine Webber then proceeded to recommend a STRONG BUY on Enron stock for an additional three months, just four days prior to Enron filing for bankruptcy. Enron was falling off a cliff and the brokerage firm chose to protect their revenue stream rather than protecting the wealth of its clients," said Sapio.
The entire financial industry needs to be overhauled. "Investment advice should be given in a no-load, no-commission, unbiased environment. If this were the standard, investor results would increase dramatically," said Sapio. "It's the only way that the public would get objective information, and it would also eliminate consumer confusion," he added.
More than $7.0 trillion is currently invested in mutual funds, according to the Investment Institute (ICI). Despite the incredible size of the industry, MUTUALS.com is the only company that sells all mutual funds, while also providing specific and unbiased advise on which funds best fit an individual's goals.
Since 1994, MUTUALS.com, a SEC registered Investment Advisor, has advised and analyzed all mutual funds -- currently numbering 11,716. The company has a patent-pending with the U.S. Patent and Trademark Office for its proprietary mutual fund selection/filtering system. MUTUALS.com manages a family of five mutual funds called the 1-800-MUTUALS Advisor Series: Generation-Wave Family of Funds. The company charges no loads, no transaction fees, and no commissions, which is key to its objective, unbiased approach.
Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. MUTUALS.com, Inc. is a NASD member firm. The 1-800-MUTUALS Advisor Series funds are distributed by Quasar Distributors, LLC. To learn more, call Richard Sapio at 1-800-688-8257 or rsapio@MUTUALS.com. Also, check out www.profilesunlimited.com.