Sunday, June 27, 2010

"Exclusive" membership in The Oxford Club

Gosh,  this is such an "exclusive club".  We are so honored, so thrilled.  Of course, with this membership, we get exclusive stock picks (buy low, sell high).

There is even reference to Harry Markowitz, who won a Nobel prize in Economics (they even got his first name wrong).  But Markowitz has nothing to do with this club or newsletter, but you might not interpret it that way as you read the newsletter that is enclosed.  You can "implement the strategy in just 20 minute and then go fishing."

Well, first off, Markowitz portfolio theory is not about picking hot stocks, avoiding inflation, and consistently outperforming the S&P.  I doubt that the newsletter author has even read Markowitz's seminal paper on portfolio theory.  Second, as it has been shown time and time again, no one can consistently beat the market on a risk-adjusted basis.  If you don't believe this, then you are ripe for falling for cons and "pies in the skies" (e.g. Madoff).  The scientific evidence debunks most of what this newsletter purports.

Much of the newsletter is devoted to oil, and is prepping you for their stock picks,which are likely penny stock exploratory companies.

So what is "The Oxford Club"? It is one of the organizations connected to some of the other groups at P.O. Box 925, Frederick, Maryland.  Check them out at the BBB: http://www.bbb.org/greater-maryland/business-reviews/publishers-book/agora-in-baltimore-md-211 Apparently, not only can this company pick hot stocks to generate unbelievable returns (I am being sarcastic here), but it also has nutrition advice, hawks "cures", and helps you avoid taxes, among other things.  Exclusive?  It means that you are on the mailing list of this company and are considered susceptible to mail-order advertisements. 

Want to know more about "The Oxford Club"? Check out:
http://www.stockgumshoe.com/2008/12/claim-your-gas-rebate-check-oxford-club.html  for a discussion of one of their "tips".

The hype on The Oxford Club is also provided by Investment U, which happens to be a website of the Oxford Club.  Note the disclaimer on this website-- the folks dispensing advice are not registered to do so.  This is a big warning sign.  These folks are not qualified to give investment advice, but are doing so any way.  Check out the qualifications of the "Investment Advisers", and then run the names through BrokerCheck at www.finra.org .  It's always a good idea to check out the folks giving the advice.

The old adage, "If it is too good to be true it probably is" applies to The Oxford Club. At random, one out of many "picks" will hit the jackpot, but the odds are that you will lose your money by following hot stock tips from anyone. If they were so hot, then the "Club" would really be exclusive and would trade on these -- and not have to make money touting a newsletter.  As you read the newsletter, consider that anyone can look back at stock movements and identify a big mover and its gains -- and talk this up as if they predicted it.

Be careful out there.  In general, stocks are risky.  When you start getting in to the penny stocks, you are really talking about significant risk -- that most of us should not consider.

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