Why The Great Majority Of Investment Experts Are Not Trustworthy
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 an organization 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 extremely rich former hedge fund manager featured, Whats impor-tant if you are in hedge fund method, says Cramer, is to not do such a thing remotely truthful, since the truth is really against your view. For all those of you that remain skeptical about the fraudulent techniques of investment professionals and companies, probably a colleagues admission may finally persuade you. Why these stories also make big statements is beyond me. Be taught further about http://www.linkemperor.com by visiting our dazzling paper. As Ive been saying for a long time that the investment industry is saturated in investment professionals, everyone from economic consultants to private money managers to professional money managers, hard at work weaving the emperors new clothes, a former industry insider myself. However, only if a huge 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. Sometime ago in a fabled kingdom, there lived an emperor whose vanity was famous. Two swindlers, Guido and Luigi Farabutto, knew they can capitalize on this emperors character flaw to produce a huge pro-fit. They acknowledged the emperor and told him that they'd sew him the finest suits of an extremely costly special material that would be invisible to anyone that was ridiculous or of low character. The emperor, fearing he wouldn't be able to see the clothes, sent two of his men to go see the suits. The men came back, and afraid to share with the emperor they could not see the garments, told the emperor that the suits were one of the most beautiful suits they had ever seen. He didn't wish to admit that he could not see the clothes for fear of being considered stupid and of low character, when the emperor went along to see the Farabuttos, understanding that his servants was able to see the clothes. So he proceeded allowing himself to be dressed in non-existent clothes to get a parade through town and proceeded to walk through town in his underwear. When he discovered a child that said and pointed at him, But he has no garments, only then did the emperor understood that he'd been conned. It is amazing if you ask me that many investors, even individuals with thousands at investment firms, really think that their consultant or their organization has their needs at heart.