Avoiding the Ponzi Scam.

1) Make sure your adviser is legit.
Check with national organizations that issue credentials. They include the National Association of Personal Financial Advisers, the Financial Planning Association, and the Certified Financial Board of Standards. Each offers a searchable database with contact information for planners in each state. The American Institute of Certified Public Accountants has a list of CPAs who've earned the personal financial specialist designation.
2) Dig deep.
Find out how long the adviser has been in the business. Check with the Securities and Exchange Commission.
3) Understand the difference between a manager and a custodian.
The manager of assets executes those transactions.. A custodian is in possession of your investment account and issues periodic statements of transactions.
4) Be skeptical of pitches for exotic or obscure products.
"Only invest in transparent assets. We don't invest in anything we can't turn to cash in three days or less, which limits us to stocks, bonds, mutual funds, and exchange-traded funds." A hedge fund, which isn't required to disclose its holdings, is an example of a nontransparent investment. Also, be especially wary if your adviser downplays or denies risk.
5) Be especially vigilant if you're nearing or in retirement.
Bogus operators sometimes con older investors through free-lunch seminars that are followed by calls from salespeople a few days later (a common recommendation is to liquidate securities and use the proceeds to buy indexed or variable annuities).If someone promises an investment return that is unnaturally high or steady, the warning alarm should start sounding.
Tracking the Dow on Friday,19/12/08
Quadaraple Witching Day.
9:30am:--Bullish 100.00 points gap-up with a morning star doji.
Dow Jones has reported that the White House will give automakers $13.4 billion in funding from the Treasury's Troubled Asset Relief Program (TARP). An additional $4.0 billion will be made available in February.
10:30am:--Early session high with bearish spin.
News of the bailout plan has overshadowed word that Standard & Poor's downgraded the ratings and outlooks of several financial firms, including, but not limited to, Goldman Sachs (GS), Wells Fargo (WFC), JPMorgan Chase (JPM), and Bank of America (BAC).
11:30am:--Bearish spin steep downward spike.
General Motors says Administration's actions helps to preserve many jobs, and supports the continued operation of GM and the many suppliers (GM) 4.28 +0.62 Fitch has downgraded the Issuer Default Rating of General Motors to 'C', indicating that default is imminent.
The threat of a bankruptcy remains, given the terms of the federal assistance, and the maturity.
12:30pm:--Bullish gap-up being covered back fully followed by technical rebound at the bearish low.
Chevron announces it has been awarded a master contract by the U.S. Department of Energy (CVX) 73.04 -0.01.To reduce energy and water consumption and increase the use of renewable energy at agency facilities.
1:30pm:--Technical rebound failed to smell the MAV,lack of bullish momentum.
Ford reminded investors that it is in a different position than competitors and is not facing a near-term liquidity issue. Ford also stated it is not seeking short-term financial assistance from the government.
2:30pm:--Another near session low with technical rebound failed to reach MAV.
December stock options expire at the end of this session, which makes it likely that volume will be higher across the major indices. Option expiration could also bring about added volatility.
3:30pm:--Bearish morning star.
Moody's puts ratings of Bank Of America, National Association (Aaa Deposits) on review for downgrade (BAC) 13.85 -0.11
4:00pm:--Bearish unwinding of position overuling the attempted spike up.
Events of interest for the week of, December 22nd - 26th, include: Monday: No events/conferences of note... Tuesday: GW Special Shareholders Meeting; PNC Special Shareholders Meeting; WTBA Shareholders Meeting... Wednesday: Financial future & options and equity markets close early for the Christmas holiday (13:00 ET)... Thursday: Equity and bond markets closed for the Christmas holiday... Friday: MVCO Shareholders Meeting.

A bumpy Friday caused by the expiration of options contracts, as well as the routine rebalancing of stock indexes.
The whole of Tuesday's bull has been intelligently stripped off its balance.
Friday's long upper shadow is poised to be covered back again and the musical chair starts rolling again till Christmas.