Wall Street Bully Wins Again!

Posted on August 6, 2012 by Tony — No Comments ↓

This a followup to the Goldman Sachs predictions made this year.

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.

Image representing Goldman Sachs as depicted i... — Image via CrunchBase

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%.

Well on Friday August 3, 2012 the buy stop limit was met when the S&P 500 closed at 1391and Goldman Sachs investors experienced another loss. This time, an additional -4.5% loss.

For those of you unfamiliar with short, the definition of short is the trader borrows the investment from the brokerage firm, sells it and then waits to buy it back at a lower price. Instead of buy and then sell, the trader sells and then buys.

This is another example that NO ONE can predict the future. A prestigious firm like Goldman Sachs is no exception. Of course, Goldman Sachs makes money on every trade, via, trading fees.

To succeed long term in investing forget forecasts and predictions. You must own equities….globally diversify….rebalance.

You must avoid giving your profit to the Wall Street bullies.

No One Can Predict The Future…..No One!!

Posted on June 26, 2012 by Tony — No Comments ↓

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

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.

Gary Cohn: ‘Of Course, I Would Like To be CEO of Goldman Sachs’(blogs.wsj.com)
Goldman says sell the S&P 500(buzz.money.cnn.com)
You Can Bet on Goldman Sachs-But it is only a Bet!(savinginvestors.wordpress.com)

Does Wall Street Have Your Best Interest in Mind?

Posted on March 15, 2012 by Tony — No Comments ↓

There has been increased attention paid to the financial brokerage industry with regard to a non-fiduciary mindset on Wall Street. Investors are continually looking for the answer to one question. “How can I beat the market?” Not only is it a matter of increased return, but bragging right to their friends on how much money their broker makes them. These same braggers neglect to tell when their broker loses their money. Wall Street is more than happy to accommodate this greed.

It is much like gamblers at a casino, you never hear about the losses only the wins. Investors are continually moving to the hot broker. As I call it musical brokers. Yesterday’s article in the New York Times brings this out in the open again. This is what most of us suspected.

On Wednesday, the Goldman Sachs executive Greg Smith resigned his job by writing a scathing op-ed in the New York Times. In that column, written as an exit letter, he accuses top management of encouraging predatory sales practices that actively hurt customers:

“I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make the most possible money off of them.”

While he insists that he’s seen no behavior that’s actually illegal, he explains that:

“People push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Everyday, in fact.”

To be a successful investor find an academically proven scientific strategy to investing and remain disciplined to it. Three simple rules will help you succeed. Own equities……globally diversify………rebalance.

Please comment or call to discuss how to protect yourself from Wall Street and inflation.