Thanks for those insights into retail marketing...interesting.
Based on what you’ve said, I’m happy to acknowledge that some of the people who walked away from Storm probably did so for the reasons you’ve mentioned.
There are, however, others who walked away because they spotted the risks.
One thing I've never been able to agree with on this thread is the repeated assertions that nobody could have seen through the Storm strategy, that the information necessary to spot the con wasn’t available to the average person, that if ASIC couldn’t see through it then how could anyone else be expected to see through it, that even savvy investors couldn’t have seen through it, that the average man in the street couldn’t be expected to know that an asset class such as shares has a history of volatility, that if somebody like Frank with his financial accounting background couldn’t see through it then what chance did anyone else have....and so on and so on and so on.
The fact is that the simplest of research into past stock market plunges would have shown the strategy to be risky in the extreme, regardless of how safe Storm made it sound by speaking about their trigger points and the ‘conservative’ index funds that were their investment of choice.
Over the years I’ve been regularly targeted by one con after another via emails and letters in the post, mostly from people pushing highly leveraged investments in options, futures, currencies, stocks, property – you name it.
God knows how they get my contact details – I certainly don’t supply them – but in one way or another these cons all seem to have a similar theme to Storm......they espouse the virtues of magnifying your returns through the use of gearing, they downplay the enormous risks, they try to scare you with talk of how doing nothing with your money is the greatest risk of all due to the erosion effect of inflation, and they talk about the great lifestyle you’ll have as a result of building yourself into a wealthy capitalist (with their help of course!).
Whenever I read their rubbish I think back to the 1987 market crash and the enormous number of people who were devastated by it.
I’m still perplexed as to why Storm investors who were adults in 1987 wouldn’t have thought back to that well-publicized crash, and considered how a similar crash would effect them if they implemented a strategy of risking their homes to raise massive loans to sink into the stock market.
Do people just have short memories? Or did they think that '87 was just a one-off crash that wouldn’t happen again? I once asked Frank ‘Did you consider the 1987 market crash before sinking all that money into the stock market’?
But I received no answer.
Ijustnewit, now that you and I are being civil to each other, can you tell me if the ‘87 crash, and more specifically the possibility of another similar crash, was something you considered when you were deciding whether or not to sign on with Storm?