Last month a big story that made the rounds within the financial 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 explained this practice is illegal, but easy-to do because the SEC [Securities Exchange Commission, the U.S. regulatory body] does not understand it. More over, since the fact is so against your view, the excessively rich former hedge fund manager featured, Whats impor-tant when youre in hedge fund method, says Cramer, is to not do such a thing remotely sincere. For all those of you that remain skeptical concerning the deceitful practices of companies and investment professionals, perhaps an associates entrance may finally tell you. Why these reports even make big statements is beyond me. Get additional information on this partner website by visiting [http://armorgames.com/user/rentlinktd rentlinktds Profile Armor Games]. As Ive been saying for many years that the investment industry is full of investment experts, everybody else from financial consultants to private wealth managers to professional money managers, hard at work weaving the emperors new clothes, a former industry insider myself. Nevertheless, only once a huge 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 let me review it for you. Sometime 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 make a big pro-fit. They acknowledged the emperor and told him that they would sew him the finest suits of a very high priced special cloth that would be invisible to anybody that was ridiculous or of low character. The emperor, fearing he wouldnt manage to see the garments, sent two of his men to go see the matches. The men came back, and afraid to share with the emperor they couldnt begin to see the clothes, told the emperor that the suits were probably the most beautiful suits theyd ever seen. He did not wish to acknowledge that he could not see the clothes for fear of being considered foolish and of low character, once the emperor visited see the Farabuttos, understanding that his servants have been able to see the clothes. So h-e proceeded to allow himself to be dressed in non-existent clothes for a parade through town and proceeded to walk through town in his underwear. When he discovered a young boy that pointed at him and said, But he has no garments, only then did the emperor understood that he had been swindled. It is incredible if you ask me that many people, even individuals with thousands at investment companies, actually think that their counselor or their firm has their needs at heart. In fact, in my listing of 101 Reasons Why Managing Your Own Money is the Only Solution to Build Wealth at http://www.smartknowledgeu.com, Ive given viewers 101 reasons why this is very, very seldom the case. Needless to say, every one thinks that their advisor or financial consultant could be the one guy or gal at their agency that actually cares about their financial security. If only they can spend just 1 day in the trenches with their counselor, they would 999 times out of 1000, witness an entirely different story. Sick relay another technique I learned about a top economic expert in a top Wall Street firm that should get your attention. This striking [http://jazztimes.com/community/profiles/346941-emporerarticleam JazzTimes] use with has numerous grand lessons for the meaning behind it. This leading economic specialist maintained several million-dollar accounts. Just how he would get wealthy people to trust him was to show for them his ability to select stocks that performed phenomenally well. To do this, hed look for a very thinly traded stock that traditionally had been very risky. He would pay for a list of high net worth clients, phone five people o-n that list and tell them he was a premier economic consultant at his agency. Obviously, this may not get the attention of those rich people simply because they did not know him from Adam. Knowing theyd be reluctant to hand their money to him and start a relationship with him, he would recognize their concerns. He would then check out ask them to write the name of this share that he had reviewed over a bit of paper. Hed then tell these 10 individuals that his stock buying methodology was so good that he was 100 certain that if they dedicated to this stock, theyd make a healthier profit in a short span of time. Then he would simply take another 10 people on the number, repeat this con, but instead, tell these 10 people that he was 100 sure if they bought put options on this stock that theyd make a lot of money from this stock. Then he would wait weeks until the stock moved 2500-10 or so. Clicking [http://social.xfire.com/blog/commerciallinkys link emperor] perhaps provides lessons you should tell your co-worker. In the event the stock gained, hed call the 10 individuals who he told he was hundreds of sure theyd make a lot of money from purchasing the stock. If the stock lost 25 roughly, hed forget about the 10 wealthy individuals he promised would call the 10 people he told to short the stock and make lots of money by buying this stock. When he called these individuals they were amazed that he was right regarding a stock that they had never heard about, and many agreed to give a lot of money to him. I tell you this story because plans like this, made to make it appear as though these investment professionals, and I use this expression very lightly, really know what they are doing, when in fact, theyre selling only emperors clothes to you. Actually if you have been reading my sites for a while now, you understand that the strategies of resource allocation, diversification, and low volatility are typical just emperors clothes as-well. Although they could appear great to-you, thats just what the most effective of sales methods accomplish. They are designed therefore well that they cause you to feel comfortable and in control. The very best emperors clothes promote customers minus the customers also recognizing they have been highly selected goals. Only research our Educational methods and Down the Rabbit Hole articles at http://www.theundergroundinvestor.com to discover why most of the most commonly known investment strategies today are nothing more than emperors clothes. My estimate of the percent of specialists that place emperor clothes everyday to hand to buyers is 999-year. They weave schemes, marketing strategies, and sales strategies in complex ways to ensure that upon presentation to you, they seem like the finest financial strategies designed specifically for you, their finest customers. Only ultimately, these methods leave you financially naked, so much so, that even kids with no financial level of sophistication, could comment upon seeing these people that so willingly let them-selves be used for a trip, But he has no wealth. In-fact, only the other day, I read this article with claims from the CEO of a firm that handles the accounts of several of the richest people in America about what it requires to seriously create success. Many of his claims, though emperors clothes arguments that most of the people accept as fact, were so ludicrous that I laughed out loud, knowing that he had been able to weave emperors clothes for the top-tier of wealthiest clients in America. Do not misunderstand me, its not that in my opinion that everyone in the commercial is out to con you out of your hard earned money. There are some really good, honest people in the business. But, due to how firms compensate their financial consultants, this much is certain. There will come a time, and most likely several times, whenever a specialist will have to make a choice between you and himself/herself. Which means the guide will have to choose between doing absolutely the most useful thing for you and doing something much less good for you but better for his or her pay. And having experienced the business, I know a lot of experts that chose the latter often and rarely any at all that chose the latter rarely. Bear in mind Jim Cramer, someone that developed an estimated fortune of 100 million by adjusting wealthy clients, explained, Whats important when you are in hedge fund method, is not to do such a thing remotely honest, since the fact is indeed against your view. And once you read Cramers record again, understand that this attitude predominates among almost all investment business specialists, not only Jim Cramer.. For other interpretations, people should have a view at [http://about.me/checklinkcs Zachariassen Berman - Steps to make your site popular about.me].
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