If your financial adviser tells you to invest in the stock market for the long term, for example, he asks you to keep an eye for the long haul. In other words, he doesn’t want you to leave the market even if shares are falling in prices.

In the long run, he advises, prospects will look up, as every market experiences its ebbs and flows, that is, highs and lows, ups and downs, peaks and troughs.

He has a point – but only up to a point.

Eventually, the market will turn from bearish to bullish and prices will rise. However, eventually too, they’ll drop one more time, as every market experiences its ebbs and flows, that is, highs and lows, ups and downs, peaks and troughs.

Exactly. And so what your financial adviser asks you to do is essentially to gamble on the market. And in gambling, whether it’s in Las Vegas or Wall Street, the average player eventually loses.

In Wall Street, the only ones who win are the banks and your financial adviser, who collects fees from you even in a bear market while you, even in a bull market, see your profits slashed further by inflation.

By the way, your financial adviser is always advising portfolio investments for the long term because he works for the banks, who are the only real winners at the end of the day or, um, in the long run.

Sounds confusing?

It is, otherwise you would not need to listen to the so-called financial advisers in the first place.

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