Many investors still rely on their investment advisors to provide guidance and to help them manage their portfolios. The advice they receive is as varied as the background, knowledge and experience of their advisors. Some of it is good, some of it is bad, and some is just plain ugly.
Investment decisions are made in a world of uncertainty, and making investment mistakes is expected. No one has a crystal ball, and investors should not expect their financial advisors to be right all of the time.
That said, making an investment mistake based on sound judgment and wise counsel is one thing; making a mistake based on poor advice is another matter.
Bad investment advice is usually due to one of two reasons.
The first is that an advisor will place his or her self-interest before that of the client.