Thursday, March 22, 2012

The Distinguished Gentlemen...

...was a forgettable movie (sans this scene which starts at 7:40 of this clip, which leads to this result, starting at 2:00 of this clip) where the protagonist (Eddie Murphy) happens to share the last name of a recently deceased member of Congress, prompting an election run, subsequent victory, general hilarity, and an appropriate ethical crisis ending with the obligatory happy outcome.

Things that share certain characteristics are usually not exactly equivalent. This write up discusses some of the dangers of equating ETFs with ETNs, highlighting tried and true marketing tactics (familiarity) like the subject of our movie in this post.

Buying something without a complete understanding of the risks involved is never a good idea. This is something I have learned the hard way. When dealing with investment banks, assuming informational asymmetry is a survival tactic.


No comments: