Finance

"SOLOMAN THREW THE MONEY CHANGERS OUT OF THE TEMPLE"

Financial services accounts for 16.5 % of the S&P 500 index just behind Technology at 19.3%. Much too large; its role should be extending credit to the deserving and denying those unworthy of credit and yes providing insurance. I'd think somewhere around 5% of the S&P 500 would would be appropriate.

About 10 years ago companies began to shed their employee pensions and directed their employees to set up their own IRA's, 401K's, etc.
A good analogy: the average employee having to choose his own retirement plan is like an airline passenger upon entering the plane being told that he/she will be piloting the plane that day..

Finance then became exponentially larger to fill the void. Very few of the them know what they're talking about. For instance, there are 26444 mutual funds listed in Morningstar; 120 of biggest mutual funds dedicated solely to Emerging Markets. Really?

Finance carves out benchmarks such as:

• Making distinction between small, medium, and large companies and advising clients to move in and out based on various economic conditions.
• Rebalancing one's investments at least yearly. No need if you are investing for the long term.

Finance has created a froth; a very lucrative froth.