Why A Large Proportion Of Investment Experts Aren't Trustworthy
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| Description | Last month a big story that made the rounds within the monetary media was Jim Cramers (of-the Street.com) statement that some hedge-fund managers spread false rumors about an organization to large trading agents and the media to drive a stock price lower. He said this practice is illegal, but easy to do 'since the SEC [Securities Exchange Commission, the U.S. regulatory body] doesn't understand it.' More over, because the truth is so against your view, the exceptionally rich former hedge fund manager boasted, Whats impor-tant if you are in hedge fund style, says Cramer, is to not do any such thing remotely truthful. For those of you that remain skeptical regarding the deceitful practices of companies and investment professionals, perhaps a partners entrance may finally tell you. Why these reports even make big headlines is beyond me. As Ive been saying for a long time that the investment industry is saturated in investment professionals, everyone else from economic consultants to individual money managers to professional money managers, hard at work weaving the emperors new clothes, a former industry core myself. Nevertheless, only once a big mouth like Cramer speaks of the dishonesty that netted him great success does it attract attention. For those of you not familiar with the fantasy The Emperors New Clothes I want to review it for you. Way back when in a kingdom, there lived an emperor whose vanity was legendary. Two swindlers, Luigi Farabutto and Guido, knew they can capitalize on this emperors character defect to make a large pro-fit. They acknowledged the emperor and told him that they would sew him the best suits of a really costly special fabric that would be invisible to everyone that was stupid or of low character. The emperor, fearing he wouldn't manage to see the garments, sent two of his men to go see the matches. The men came ultimately back, and afraid to inform the emperor they couldn't begin to see the garments, told the emperor the suits were one of the most beautiful suits they had ever seen. He didn't wish to acknowledge that he couldn't see the clothes for fear of being considered stupid and of low character, If the emperor went along to see the Farabuttos, knowing that his servants were able to see the clothes. Therefore h-e proceeded to permit herself to be dressed in clothes for a march through town and proceeded to go through town in his underwear. When he came upon a young child that pointed at him and said, But he has no clothes, only then did the emperor understood that he had been swindled. It is amazing to me that many investors, even individuals with thousands at investment companies, actually think that their counselor or their company has their needs at heart. In-fact, within my list of 101 Reasons Why Managing Your Personal Money is the Only Method to Build Wealth at http://www.smartknowledgeu.com, Ive given visitors 101 reasons why this is very, very seldom the case. Obviously, everybody else thinks that their counselor or financial consultant may be the one guy or gal at their company that actually cares about their financial security. They would 999 times out of 1,000, watch a totally different story, If perhaps they can spend only one-day in the trenches using their consultant. Ill exchange yet another method I learned about a top financial consultant at a top Wall Street firm which should get your attention. Pure Volume™ | We're Listening To You contains more concerning the reason for this enterprise. That prime financial consultant managed many million dollar accounts. Just how he would get wealthy investors to trust him was to show for them his ability to choose stocks that performed extremely well. To achieve this, he would find a very thinly traded stock that traditionally was very risky. He would buy a list of high net worth clients, phone ten people on that list and tell them he was a premier financial expert at his agency. Naturally, this could not have the attention of these wealthy people since they didn't know him from Adam. Knowing they would be hesitant to hand their money to him and begin a relationship with him, he would accept their reservations. He'd then go to keep these things publish the name of this stock that he'd researched on the piece of paper. He'd then tell these 1-0 people that his stock choosing technique was so great that he was 100% sure that if they dedicated to this stock, they'd produce a healthy pro-fit in a brief period of time. Then he'd simply take another 10 people on the record, repeat this con, but instead, inform these 10 people that he was 100% certain that they would make lots of money from this stock if they bought put options on this stock. Before stock moved 2500-10 or so then he would wait several weeks. He'd call the 10 people who he told he was one hundred thousand sure they'd make a lot of money from buying the stock, If the stock gained. If the stock lost 25% approximately, he would forget about the 10 rich individuals he promised would call the 10 people he told to short the stock and make plenty of cash by purchasing this stock. They were astonished that he was right regarding an investment that they had never heard about when he called these individuals, and many decided to provide lots of money to him. I tell you this story because schemes like this, made to make it look as if these investment professionals, and I use this term really gently, really know what they're doing, when in fact, they are attempting to sell nothing more than emperors clothes to you. In fact if you've been reading my blogs for some time now, you realize that the strategies of asset allocation, diversification, and low volatility are all only emperors clothes as-well. Although they may appear good for you, thats exactly what the top of most revenue strategies complete. They are made so well that they allow you to feel comfortable and responsible. Browse here at details to explore the inner workings of it. The most effective emperors clothes sell customers without the customers even recognizing that they have been highly selected objectives. Only search our Educational resources and Down the Rabbit Hole articles at http://www.theundergroundinvestor.com to find out why most of the most widely known investment methods to-day are nothing more than emperors clothes. My estimate of the % of professionals that place emperor clothes every-day to hand to buyers is 99-years. So that upon presentation to you, they seem like the finest financial strategies created specifically for you, their finest customers they incorporate techniques, marketing strategies, and income strategies in complex ways. Only in the long run, these techniques leave you financially naked, so much so, that even young ones with no economic level of sophistication, could comment upon seeing these investors that so willingly let them-selves be studied for a ride, But he's no wealth. To learn additional information, consider checking out: PureVolume™ | We're Listening To You. In fact, only a week ago, I read this report with statements from the CEO of a firm that manages the records of some of the wealthiest people in The Usa about what it will take to genuinely create wealth. A lot of his statements, however emperors clothes arguments that most of the people accept as truth, were so ridiculous that I laughed out loud, knowing that he'd been able to weave emperors clothes for the top-tier of wealthiest consumers in The Usa. Don't get me wrong, it is not that I believe that everyone in the commercial is out to con you out of your hard earned money. There are a few truly good, honest people in the business. However, due to how firms pay their financial specialists, this much is inevitable. There will come a time, and most likely many times, whenever a specialist will have-to make a choice between you and himself/herself. Which means that the guide must choose between doing the absolute best thing for you and doing something much less good for you but better for his or her pay. And having been in the company, I know a lot of consultants that chose the latter often and seldom any at all that chose the latter sometimes. Bear in mind Jim Cramer, some one that created an estimated fortune of $100 million by influencing rich customers, said, Whats crucial when you're in hedge-fund method, is to not do such a thing remotely honest, since the fact is indeed against your view. And once you read Cramers record again, know that this mentality predominates among almost all investment business professionals, not just Jim Cramer.. |
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