Critical Warning Number Six (Is this legit or a scam?)

Internet ^ | Michael Lombardi

[bigbob]

Michael Lombardi is an investment advisor and writes newsletters. He also has put out a long internet presentation (see link) that if you sit through it all, predicts even more and bigger economic turmoil, and in the end, offers five reports to help turn you into a mini-George Soros, investing in ETFs and other means of making money during economic upheaval. If you hang in til the very end, you'll find the pricetag for this is a $195 per year subscription to his newsletter.

[bigbob]

Here's my question: Is this guy a scam artist like Stansberry and others, or a legit adviser offering a service?

We all know some the things he predicts are possible, if not probable - such as hyperinflation, collapse of the Eurozone, and another stock market crash that would put the US back into recession - or worse. The question everyone should be intersted in is: so, is there anything that I can personally do to protect myself and my assets?

I'm cynical by nature, but this one hasn't set off my BS detector -- yet. Anyone have thoughts or experiences with Mr. Lombardi and his "services"?

[proxy_user]

Well, most of them are sincere. But they usually have only one method, and sometimes it works and sometimes it doesn’t. When it does work, some guys use it and make tons of money.

But you can’t really predict the future. If these guys could, they wouldn’t have to peddle a newsletter.

[apillar]

The question I always ask myself is, “If this guy really has a technique to make you a mini George Soros, why isn’t he quietly making himself a fortune with his technique rather than try to sell it on the internet.”

[Drill Thrawl]

...make you a mini George Soros...

Why would anyone want to be a bitter old man intent on destroying the world as we know it?

[1rudeboy]

Here's my question: Is this guy a scam artist like Stansberry and others, or a legit adviser offering a service?

Here's one way to look at it:

1. compile subscription costs of newsletters that claim you are doomed,
2. determine the average subscription cost of a newsletter that claims you are doomed (designate this amount as x),
3. alternatively, calculate your own marginal propensity to consume information that you are doomed (x), and
4. calculate subscription cost > x = you are doomed.

[1rudeboy]

oops, I think it should be: subscription cost < x = you are doomed

I suck at math.

[mnehring]

+1

[OhhTee5]

Simple, does he offer a money backed guarantee of any investment losses someone incurs while following his paid advice?

If not, it’s probably a scam.

Anyone can peddle investment advice...look at all of these “ investment trading seminars”. They get your money, you try out their “ secret” formula, it doesn’t work, you lose money and the peddlers are gone.

Toooo wild.

[bigbob]

heh heh, maybe so but I think you’ve mastered the notion of “elasticity of demand”...when it comes to selling newsletters at least.

Reminds me of the “get rich quick” schemes you used to see in the back of the magazines...usually you’d get a little pamphlet describing how to write little pamphlets and put ads in the back of magazines! (Don’t ask how I know this ;-))

[Dr. Ursus]

Is he of the Nigerian Lombardi’s?

[kevinanchi]

As per my personal experience with Mr.Lombardi’s newsletters, i have experienced his ability and wit about the investment market is good. Currently we all know and talk about the recession and global economy, but does any one hardly knows that the recession and economic crashes has been going on since 18th century or may be before that, what these market analyst do is that they study the whole history and the present day economic and come up with a better way to predicted future of the market, which common man cannot do..... so for a common man who is new in the investment market, such newsletters make a lot of difference compared to knowing nothing at all....

[Rahj55]

I signed up about a year ago because I was uncertain about the bull market and I still am. Fortunately I didn’t follow Lombardi’s doom and gloom. He touts predicting all the major bubbles which you will do if you predict it almost daily. While his statistics seem very plausible, the bottom line is neither he nor anyone else knows when the bull turns bear, but if you keep repeating it you can ultimately brag about how right you were.
What really grates on me, while he talks gloom, his other numerous services and staff promote the most unbelievable stocks and “finds” that may double your investment in, and I quote, “2-3 days”. Just buy another service and you can get rich buying in while he promotes selling all you own.
My advice would be to do your own due dilligence, follow reputable information from sources like Morningstar, Marketwatch, and others and then just keep and eye on the world. I don’t believe his crystal ball is in focus any more anyone else’s. The market will do a correction sometime and though I agree it may be a severe one, he will only be right be saying everyday that it will happen, and that’s what he does. Had I followed his advice a year ago I’d have missed a 40% gain.
My 2 bits.

[BobbiedD]

Sage advice. Can I buy your newsletter :-) Things will blow up sometime, but who knows when and what trigger that is. 2013 gone, 2014, 2015, ...Market is looking like everyone thinks it can only go up. Probably one protection strategy is if you've been a buy and hold with avg cost is to periodically reduce some holdings over time. Why don't they have an automatic divest plan on broker sites :-)? Anytime I tried to time a decline before it started, I usually lost money on ETF puts as a hedge in this Bull. Some other market guru convinced me the end is imminent in 2012 and he also called all the great declines ;-)