I have read the term financial pornography many times on the Financial Web Ring forum, but I did not know what it meant. The Naked Investor, which I recently read, notes that mutual fund advertisements trumpeting previous year returns are a form of investment pornography. Columnist and advisor Paul Merriman writes:
We define “investment pornography” as misleading sales pitches meant to excite investors and goad them into enriching other people, contrary to their own best interests.
With the RRSP season fast approaching, it is a good time to remind ourselves to ignore ads that boast about recent performance or magazine stories that recommend “the ten stocks to buy now!”.
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2 responses so far ↓
1 Alex // Nov 6, 2006 at 11:11 pm
I couldn’t help but notice that you’ve got some excellent “financial porn” on the top right corner of your blog, courtesy of Google ads! Ah well, we’ve all got to make a living somehow…
As an aside, I enjoy your blog a great deal and visit regularly. Keep up the great work!
2 Canadian Capitalist // Nov 7, 2006 at 12:21 am
Unfortunately, I have no control over which Google ads appear. I wish Google would put only ads for index funds, savings accounts etc. Perhaps, one day if the blog gets big enough… Meanwhile, please do ignore the “financial porn”.
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