The Corner

Economy & Business

Hey, Stupid

The Wall Street Journal has to publish a story like this one every couple of years.

When William Mark decided to get back into investing after the 2008 financial crisis, he looked past stocks and bonds. Needing to play catch-up with his retirement portfolio, the piping engineer decided to bet on a complicated product he hoped would deliver double-digit annual returns.

It worked so well—earning him 18% a year in dividends, on average—that he eventually poured $800,000 into the investments, called leveraged exchange-traded notes, or ETNs. When the coronavirus pandemic hit, he lost almost every penny.

“I’m 67 years old and I’m basically bankrupt in just two weeks,” Mr. Mark said.

The Journal should have a standing headline for these: “Hey, Stupid, Don’t Put Money You Can’t Afford To Lose into Complex, Volatile Investments You Don’t Understand.” If your broker or your brother-in-law promises you 20 percent on yen-denominated Baltic Exchange freight future — can’t lose! — run, run, run.

Most Popular

Elections

‘Slipping and Sliding down the Polls’

This is an excerpt from episode 233 of The Editors. Rich: So Jim Geraghty, I have the RealClearPolitics Biden versus Trump polling page up right here. I’m just going to read you some numbers going back to . . . This is a CNBC poll from the 10th and 12th of June. And I’m just going to run through to the ... Read More
Elections

‘Slipping and Sliding down the Polls’

This is an excerpt from episode 233 of The Editors. Rich: So Jim Geraghty, I have the RealClearPolitics Biden versus Trump polling page up right here. I’m just going to read you some numbers going back to . . . This is a CNBC poll from the 10th and 12th of June. And I’m just going to run through to the ... Read More

Stalin, Famine, and the New York Times

‘The world is being invaded by monsters, but I suppose you don’t want to hear about that,” Both clauses of that sentence are devastatingly true: The reference is equally to the horrors of the Soviet Union’s mass murders -- and to the West’s determination to turn its back to the monstrosity. The speaker ... Read More

Stalin, Famine, and the New York Times

‘The world is being invaded by monsters, but I suppose you don’t want to hear about that,” Both clauses of that sentence are devastatingly true: The reference is equally to the horrors of the Soviet Union’s mass murders -- and to the West’s determination to turn its back to the monstrosity. The speaker ... Read More

The Year of Stupid

It turned out that the novel coronavirus was only the second-most-infectious disease to spread through the U.S. this year. Satan’s Cupcake has, after all, been diagnosed in less than 1 percent of Americans. The not-so-novel imbecility virus is, on the other hand, ravaging the minds of everyone from news ... Read More

The Year of Stupid

It turned out that the novel coronavirus was only the second-most-infectious disease to spread through the U.S. this year. Satan’s Cupcake has, after all, been diagnosed in less than 1 percent of Americans. The not-so-novel imbecility virus is, on the other hand, ravaging the minds of everyone from news ... Read More
Elections

The Strategies of Dementia Politics

Joe Biden is tragically suffering a mental eclipse and sliding away at a geometric rate. Understandably, his handlers have kept him out of sight. He stays off the campaign trail on the pretext of the virus and his age-related susceptibility to COVID-19 morbidity. I say “pretext” without apology. Quarantine ... Read More
Elections

The Strategies of Dementia Politics

Joe Biden is tragically suffering a mental eclipse and sliding away at a geometric rate. Understandably, his handlers have kept him out of sight. He stays off the campaign trail on the pretext of the virus and his age-related susceptibility to COVID-19 morbidity. I say “pretext” without apology. Quarantine ... Read More