Investors shouldn’t put their money in a product they don’t understand, Cliffe says. In the seventh instalment of a new 10-video series for eZonomics on lessons from the financial crisis, Cliffe urges investors to “keep it simple”. The series of 10 lessons show his personal view.
Ask the hard questions
“In the future, investors should demand more transparency and simplicity,” said Cliffe. He said it emerged during the financial crisis that investors got into trouble by buying highly-complex, highly-structured financial products.
“Don’t invest in something you don’t understand – and don’t be afraid to ask the hard questions of your financial adviser.”