The Private Equity Scam They Don’t Want You to Ask About

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Private equity questions you must ask before you invest. I’ve been hammering private equity here. I’ve hammered hedge funds prior to private equity. I hammered ridiculous IPOs back in the 1990s. I hammered anything that’s going to hurt individual investors out there. Does that mean all private equity, all alternative investments are bad?

No, no. The issue is that, I’m be honest with most advisors out there, they don’t know. They really don’t. They don’t understand. mean, they’re told what to put into people’s portfolios. They just don’t have the experience or knowledge when it comes to these things.

And what is happening right now is that the big firms out there see an opportunity to really cash in on this. And it’s just go out there and sell it. We’re telling you it’s good. Go ahead and do it. And that leads to all sorts of problems. You got to have you got to have some questions to ask. Some questions to ask when it comes to private equity guy got a great deal of respect for, right at the Wall Street Journal, Jason Zweig, he’s been on this as well for some time, got an email from him talking about this. Questions to ask, questions to ask your financial advisor. So we are at Markowski Investments. What you ask your financial advisor, anybody who is promoting any sort of alternative. Now this is,

Good luck with this, because if it eventually makes it, which they’re trying to do into your 401k plan, what, you’re get the kid that showed up and gave the little seminar there to explain this to you? You really think he knows? Anyway, here are some questions you can ask. Giant institutions like Yale University have.

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Dozens of specialists with years of experience and expertise in selecting and monitoring alternative assets. Even so, their performance has often been disappointing. What do you know that they don’t?

Another question. By some measures, private equity is even more expensive than publicly traded stocks. Aside from past performance, which isn’t predictive, why should I believe that this fund is likely to offer a superior return? Great question to ask. ETFs carry annual expenses as low as 0.03%. The typical alternative fund charges annual fees of at least 2.

percent 70 times more. Some charge at least 200 times more. Why do you think this fund is worth 70 times more than an ETF? From 2008 through 2022, alternative funds benefited from being able to leverage returns with borrowed money at extraordinarily low interest rates with interest rates higher. Why won’t future returns

be lower. If this alternative fund is leveraged, how has it performed relative to a low-cost ETF purchased with borrowed money? For example, how has a private credit fund performed when compared with a bond ETF bought with leverage? Private equity funds are sitting on

tens of thousands of companies they can’t sell. Why should I buy? If I need to get my money out, how long will I have to wait and what will it cost me? Do you earn any additional compensation for this recommendation? Do you own it yourself?

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These are questions that you need to ask. Again, we’ve already worked with Markowski Investments. We provide you with answers to everything. Go ahead, ask your advisor. Ask away. Ask away. See if they can answer these questions. When they can’t.

Then you pick up the phone, you go to our website at Watchdogonwallstreet.com and you get in contact with us. Again, I’m actually gonna provide, we also have our newsletter which is available on Watchdogonwallstreet.com. I’ll have all of these things in the next edition of our newsletter. That’ll probably be coming out in like two weeks. So you can sign up for that there as well. Watchdogonwallstreet.com.