On June 21, 2012 the financial markets sold off partially because of the Goldman Sachs sell recommendation on the S&P 500. The timeline below is further evidence that no one can predict the future, especially not the Wall Street bullies.
- Published: Wednesday March 21, 2012
Goldman Sachs, in a sweeping report to clients Wednesday, said it is an once-in-a-lifetime opportunity to buy stocks, which the firm said are undervalued after 20 years of relative underperformance against bonds.Just three months later…
- Published Thursday June 21, 2012
“We recommend a short position in the S&P 500 (^GSPC) index with a target of 1285 (roughly 5% below current levels) and a stop on a close above 1390. This morning, the Philly Fed print of -16.6 down sequentially and worse than expected, provides further evidence that weakness has extended into June.”
via John Borger
On March 21, 2012 the S&P 500 closed at 1393….May 1, close 1406 a 0.93% increase….June 21 close 1326, so in summary from the strong buy in March to the strong sell recommendation in June the market dropped -4.8%.
What will happen next? Is this a once-in-a-lifetime buying opportunity or a time to sell or even sell short? Goldman Sachs doesn’t care as long as the public keeps trading. This is a typical brokerage firm tactic, to keep the public trading.
This is further evidence that following the recommendations of prestigious firms such as Goldman Sachs will be disastrous to your financial health. The Wall Street bullies, including banks and insurance firms, do not have the interest of the consumer in mind. Their only goal is to make as much profit as possible.
Please do not empower the Wall Street bullies.
The best strategy for investors is to develop a prudent strategy with the help of an investment coach. You must understand the risks you are taking and remain disciplined to your strategy. You are investing for the long term, NOT speculating or gambling.
Remember to succeed in investing for the long term you must own equities…..globally diversify…..rebalance and repeat.
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