2012 is turning into a high risk year for personal finance guru Suze Orman. First she put $1 million of her money into a controversial pre-paid credit card business. Now she has formed an investment newsletter partnership with a small-time money manager who has trouble keeping his facts straight.
The same issue incorrectly claimed that in 2009 S&P 500 had a 19.79 percent return while his capital appreciation portfolio beat it by having a 24.58 percent gain.
“According to S&P, however, the index returned 26.46% in 2009—meaning Mr. Grimaldi’s portfolio trailed rather than beat the index. In nine of the 10 years cited, the newsletter understated the performance of the S&P 500,” the article says. “I’m not perfect,” Mr. Grimaldi says. “We don’t claim to be.”
While many of the thousands of financial newsletters that people pay $50 annually or more are worth less than the ink they are printed on, Orman should be pointing out the pitfalls of these instead of partnering with someone who can’t or doesn’t want to get his facts straight.
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