Hollywood tends to take important issues and put them into the public, on occasion at least. This happened just this past year with the Wall Street focused film “Money Monster”. In this film George Clooney’s investing talk show is taken hostage by a bankrupt man with a bomb strapped to his chest. What follows is a taut thriller that details just how wrong Wall Street can be. Brad Reifler, the founder and CEO of Forefront Capital, weighed in on the film by offering his two cents in regards to some of Wall Street’s bigger issues.
Reifler makes it very clear that he believes there to be a fundamental flaw with how brokers operate on Wall Street. The vast majority of brokers out there make their percentages regardless of how well their customers portfolios are actually doing. This means that customers can suffer while brokers get wealthier and wealthier. That sounds fundamentally flawed to us and Reifler seems to agree.
Being a financial expert himself, Reifler was quick to take aim at the way investments are made available to potential customers. For the most part, the lowest risk investments are held above the heads of these non-accredited investors. Instead the SEC has created a definition for ‘accredited investors’ that is so strict it leaves 99% of the people in the country out of contention. This then summarily forces high risk investors to take on high risk investments, creating a balloon that could at any moment end up popping. Now does this sound fair at all? Not to Reifler it doesn’t, and not to anyone else who is actually paying attention to these things.
Reifler has always had an eye on the ‘little guy’ when it comes to the investment world. By way of starting Forefront Capital Reifler has attempted to do his part to help build up small time investors. While it is a tough job, Reifler is up for the job after having done it in his own personal life by helping his father in law. The problems Reifler cited above are real issues but they aren’t the end of the conversation. Be sure to follow Brad on Twitter, or read more about him on Bloomberg.