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Ed Butowsky Explains Confusion in the Investment Industry

2012 May 22

To help recover from the Great Depression, the United States passed the Glass-Steagall Act, separating the capabilities of banks, brokerage firms, and insurance companies. When this act
was repealed in 1999, it allowed all financial institutions to replicate each other’s business models. As a result, mass confusion occurred in the marketplace and people did not know where
to go for their investment needs. Additionally, it became evident that the lack of training and education in this field was unacceptable.

While stocks, bonds, mutual funds, and other financial products are the “nuts and bolts” of a portfolio, how they are combined to “build” a portfolio is the key to efficient investing. Although
financial institutions sell these products, their advisors typically lack sophisticated training on properly implementing them to build an efficient portfolio. Successful investing is all about
risk management, and advisors cannot properly construct a portfolio unless they understand the correlations among each underlying asset.

To learn more about wealth management and investing visit Ed Butowsky’s Official Website

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