Why The Vast Majority Of Investment Specialists Are Not Trustworthy
Last month a major story that made the rounds inside the monetary media was Jim Cramers (of the Street.com) statement that some hedge-fund managers spread false rumors about a company to the media and large trading desks to drive-a stock price lower. He said this practice is illegal, but easy to do ‘because the SEC [Securities Exchange Commission, the U.S. regulatory body] doesn’t understand it.’ More over, because the fact is really against your view, the excessively wealthy former hedge fund manager featured, Whats important when you’re in hedge fund mode, says Cramer, is to not do such a thing remotely sincere.
For all those of you that remain skeptical about the dishonest practices of investment experts and firms, perhaps an insiders entry may finally tell you. Is beyond me why these reports also make big statements. As a former industry expert myself, Ive been saying for decades that the investment industry is saturated in investment experts, everybody else from economic consultants to individual wealth managers to professional money managers, hard at work weaving the emperors new clothes. 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 let me review it for you. Way back when in a fabled kingdom, there lived an emperor whose vanity was famous. Two swindlers, Luigi Farabutto and Guido, knew that they can capitalize on this emperors character flaw to create a large pro-fit. They acknowledged the emperor and told him that they’d sew him the finest suits of a really high priced special fabric that would be invisible to anyone that was stupid or of low character. The emperor, fearing that he would not manage to see the clothes, sent two of his men to go see the matches. The men returned, and afraid to tell the emperor they could not start to see the garments, told the emperor that the suits were one of the most beautiful suits they had ever seen.
When the emperor went along to see the Farabuttos, knowing that his servants was able to see the clothes, he did not wish to acknowledge that he could not see the clothes for fear of being considered foolish and of low character. Therefore h-e proceeded to permit herself to be dressed in clothes to get a parade through town and proceeded to walk through town in his underwear. When he came upon a new child that said and pointed at him, But he’s no clothes, only then did the emperor realized that he had been conned.
It is amazing if you ask me that many buyers, even individuals with thousands at investment companies, really believe that their counselor or their agency has their best interests at heart. In reality, within my set of 101 Reasons Why Managing Your Own Money is the Only Way to Build Wealth athttp://www.smartknowledgeu.com, Ive given viewers 101 reasons why that is very, very rarely the case. Obviously, every one thinks that their counselor or financial consultant may be the one guy or gal at their organization that actually cares about their financial security. They would 999 times out of 1000, watch a totally different story, only if they could spend only 1 day in the trenches making use of their advisor. Ill relay another technique I learned about a top economic expert in a top Wall Street firm that will get your attention.