Why A Large Proportion Of Investment Professionals Aren't Honest
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| Description | Last month a big story that made the rounds inside the financial media was Jim Cramers (of the Street.com) statement that some hedge fund managers spread false rumors about a business 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] does not understand it.' More over, the excessively wealthy former hedge fund manager boasted, Whats essential when you are in hedge fund method, says Cramer, would be to not do such a thing remotely honest, because the truth is really against your view. For all those of you that remain skeptical about the dishonest techniques of companies and investment professionals, probably an insiders entry may finally convince you. Is beyond me why these reports also make big headlines. As a former industry expert myself, Ive been saying for decades that the investment industry is high in investment specialists, everyone from financial consultants to private money managers to professional money managers, hard at work weaving the emperors new clothes. Nevertheless, only when a big mouth like Cramer speaks of the dishonesty that netted him great success does it attract attention. For those of you unfamiliar with the fable The Emperors New Clothes I would like to summarize it for you. Long ago in a fabled kingdom, there lived an emperor whose vanity was famous. Two swindlers, Luigi Farabutto and Guido, knew they could capitalize on this emperors character defect to create a large pro-fit. They approached the emperor and told him that they'd sew him the best suits of an extremely costly special cloth that would be invisible to anyone that was stupid or of low character. The emperor, fearing he would not be able to see the garments, sent two of his men to go see the suits. The men came ultimately back, and afraid to share with the emperor they couldn't see the clothes, told the emperor that the suits were probably the most beautiful suits they had ever seen. When the emperor went to see the Farabuttos, knowing that his servants were in a position to see the clothes, he didn't wish to admit that he couldn't see the clothes for fear of being considered stupid and of low character. So he proceeded to allow himself to be dressed in non-existent clothes to get a march through town and proceeded to go through town in his underwear. When he discovered a new boy that pointed at him and said, But he has no clothes, only then did the emperor understood that he'd been swindled. It is remarkable if you ask me that many people, even individuals with thousands at investment organizations, really believe that their consultant or their agency has their needs at heart. In fact, in my set of 101 Reasons Why Managing Your Own Money is the Only Way to Build Wealth at http://www.smartknowledgeu.com, Ive given visitors 101 reasons why that is very, very seldom the case. Naturally, every one thinks that their counselor or financial consultant is the one guy or girl at their firm that really cares about their financial security. They'd 999 times out of 1000, witness an entirely different story, only if they could spend just 1 day in the trenches with their specialist. Ill relay yet another strategy I learned about a top financial consultant in a top Wall Street firm which should get your attention. That leading financial specialist managed several million-dollar accounts. Just how he'd get wealthy people to trust him was to demonstrate for them his ability to pick stocks that performed phenomenally well. To do this, he'd find a very thinly traded stock that traditionally were very unstable. He'd pay-for a list of high-net worth customers, contact ten people on that list and let them know he was a premier economic expert at his company. Obviously, this may not get the attention of the rich individuals simply because they didn't know him from Adam. Knowing they would be hesitant to hand their income to him and start a relationship with him, he would acknowledge their reservations. He would then go to keep these things write the name of this stock that he'd investigated over a piece of paper. He would then tell these 10 individuals that his stock buying technique was so good that he was 100% certain that if they committed to this stock, they would produce a healthier pro-fit in a short span of time. Then he'd simply take the next 10 people on the record, repeat this con, but rather, inform these 10 people that he was 100% sure if they bought put options on this stock that they'd make lots of money from this stock. Then he would wait many weeks before stock moved 2500-3000 roughly. He would call the 10 people who he told he was a large number of sure they'd make a lot of money from buying the stock, If the stock received. He would just forget about the 10 rich individuals he promised would make lots of money by purchasing this stock and call the 10 people he told to short the stock, if the stock lost 25% approximately. They were amazed that he was right regarding a stock that they had never heard of when he called these people, and many decided to give lots of money to him. I tell you this story because schemes like this, designed to make it look as if these investment professionals, and I use this term very carefully, really understand what they're doing, when in fact, they're trying to sell simply emperors clothes to you. Actually if you have been reading my websites for a while now, you understand that the strategies of diversification, resource allocation, and low volatility are just emperors clothes as well. Dig up more on the affiliated article directory - Click here: linkempereor. Although they might sound good to you, thats exactly what the most effective of all income techniques complete. They are designed therefore well that they allow you to feel comfortable and in charge. The most effective emperors clothes offer customers with no customers also knowing that they were highly selected targets. Just search our Educational methods and Down the Rabbit Hole articles at http://www.theundergroundinvestor.com to find why all of the best known investment strategies to-day are nothing more than emperors clothes. My estimate of the percent of professionals that place emperor clothes every day to hand to people is 99-year. They incorporate strategies, marketing strategies, and sales strategies in complex ways so that upon presentation to you, they seem like the finest financial strategies created especially for you, their finest clients. Only in the long run, these strategies leave you financially bare, so much so, that even kiddies with no level of sophistication, could comment upon seeing these investors that so willingly let them-selves be used for a trip, But he has no wealth. Actually, just last week, I read this report with claims from the CEO of the firm that manages the accounts of a number of the richest people in The Us by what it requires to seriously build wealth. A lot of his statements, however emperors clothes reasons that a lot of 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 clients in America. Do not misunderstand me, it's not that I believe that everybody in the business is out to con you out of your wages. There are some really good, honest people in the commercial. But, due to how firms pay their financial instructors, this much is inevitable. There will come a time, and most likely repeatedly, when a consultant will have to make a decision between you and himself/herself. Clicking Olsson Konradsen | re.vu likely provides cautions you could give to your mom. This means that the expert must choose between doing the absolute best thing for you and doing some thing much less good for you but better for her or his salary. And having experienced the company, I know a lot of instructors that chose the latter often times and rarely any at all that chose the latter occasionally. Always remember Jim Cramer, someone that created approximately fortune of $100 million by manipulating rich clients, reported, Whats impor-tant when you're in hedge fund method, is not to do any such thing remotely honest, since the truth is so against your view. And when you read Cramers statement again, know that this mentality predominates among virtually all investment market experts, not only Jim Cramer.. Dig up more on linkempereor by going to our staggering essay. |
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