A major story that made the rounds inside the financial media last month was Jim Cramers (of-the Street.com) statement that some hedge fund managers spread false rumors about an organization to large trading companies 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] doesn't understand it.' Furthermore, the exceptionally rich former hedge fund manager boasted, Whats crucial when you're in hedge fund function, says Cramer, is to not do such a thing remotely honest, as the truth is really against your view.
For those of you that remain skeptical concerning the dishonest methods of investment experts and companies, probably an insiders entrance will finally tell you. Is beyond me why these reports even make big headlines. As a former industry expert myself, Ive been saying for decades that the investment industry is saturated in investment experts, everyone else from financial consultants to individual money managers to professional money managers, hard at work weaving the emperors new clothes. For different viewpoints, consider checking out: this page is not affiliated. Nevertheless, only when a big mouth like Cramer speaks of the dishonesty that netted him great success does it attract attention. Browse this web site http://www.linkemperor.com to research the purpose of it.
For those of you not familiar with the myth The Emperors New Clothes I would like to review it for you. To check up additional information, we know you take a peep at: inside link emporer. Long ago in a fabled kingdom, there lived an emperor whose vanity was renowned. Two swindlers, Luigi Farabutto and Guido, knew that they can capitalize on this emperors character flaw to produce a huge profit. They acknowledged the emperor and told him that they would sew him the finest suits of an extremely expensive special material that would be invisible to anybody that was ridiculous or of low character. The emperor, fearing that he wouldn't manage to see the garments, sent two of his men to go see the suits. The men came back, and afraid to tell the emperor they could not begin to see the clothes, told the emperor that the suits were the most beautiful suits they had ever seen.
Once the emperor went along to see the Farabuttos, knowing that his servants have been in a position to see the clothes, he did not wish to admit that he could not see the clothes for fear of being considered foolish and of low character. So h-e proceeded to permit himself to be dressed in clothes to get a march through town and proceeded to go through town in his underwear. When he discovered a young boy that said and pointed at him, But he has no clothes, only then did the emperor understood that he had been conned.
It's remarkable to me that many people, even those with thousands at investment companies, actually believe that their advisor or their organization has their best interests at heart. In reality, within my set of 101 Reasons Why Managing Your Personal Money is the Only Solution to Build Wealth at http://www.smartknowledgeu.com, Ive given visitors 101 reasons why this is very, very seldom the case. Of-course, everyone thinks that their advisor or financial consultant could be the one guy or gal at their organization that actually cares about their financial security. If perhaps they could spend only one day in the trenches with their advisor, they would 999 times out of 1,000, watch a completely different story. Ill exchange yet another method I learned about a top financial expert at a top Wall Street firm that should get your attention.
This top financial expert managed several million dollar accounts. Just how he would get wealthy investors to trust him was to show for them his ability to choose stocks that performed phenomenally well. To accomplish this, he would look for a very thinly traded stock that traditionally had been very risky. He'd purchase a list of high-net worth customers, call twenty people on that list and let them know he was a top economic consultant at his agency. Needless to say, this might not have the attention of the wealthy people since they did not know him from Adam. Knowing they'd be unwilling to hand their money to him and commence a relationship with him, he'd accept their reservations. He would then proceed to ask them to write the name of this share that he'd explored on the piece of paper. He would then tell these 1-0 people that his stock selecting methodology was so great that he was 100% certain that if they invested in this stock, they would create a healthy pro-fit in a short span of time.
Then he'd simply take another 10 people on the list, repeat this con, but instead, tell these 10 people that he was 100% sure if they purchased put options on this stock that they would make lots of money from this stock. Until the stock moved 2500-10 roughly then he would wait many weeks. He'd call the 10 people that he told he was one hundred thousand certain they would make a lot of money from buying the stock, when the stock acquired. He would just forget about the 10 rich people he promised would call the 10 people he told to short the stock and make a lot of money by purchasing this stock, if the stock lost 25% roughly. They were surprised that he was right regarding an investment that they'd never heard of when he called these people, and many agreed to provide 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 gently, really know what they are doing, when in fact, they are trying to sell only emperors clothes to you. The truth is if you've been reading my websites for some time now, you realize that the strategies of asset allocation, diversification, and low volatility are all just emperors clothes as well. Although they could sound great for you, thats exactly what the top of income methods complete. They're designed so well that they make you feel comfortable and in control. The very best emperors clothes promote customers minus the customers even acknowledging they have been highly selected goals. Only search our Educational sources and Down the Rabbit Hole articles at http://www.theundergroundinvestor.com to find out why most of the most commonly known investment methods today are simply emperors clothes.
My estimate of the per cent of specialists that weave emperor clothes every single day handy to people is 99-years. They weave plans, marketing strategies, and sales strategies in complex ways to ensure that upon presentation to you, they seem like the finest financial strategies created specifically for you, their finest clients. Only in the end, these methods keep you financially naked, so much so, that even kids with no financial level of complexity, would comment upon seeing these investors that so willingly let them-selves be studied for a ride, But he's no money.
Actually, only last week, I read this article with statements from the CEO of a company that manages the accounts of a few of the people in The Usa by what it will take to truly create success. Many of his statements, however emperors clothes arguments that a lot of people accept as fact, were so ridiculous that I laughed out loud, knowing that he had been able to incorporate emperors clothes for the top-tier of richest clients in The Usa. Do not misunderstand me, it's not that in my opinion that everyone available is out to scam you out of your hard earned cash. There are a few truly good, honest people available. Get further on a related site by clicking link empereor.
Nevertheless, as a result of how firms compensate their economic specialists, that much is inevitable. There will come a time, and probably many times, whenever a expert will have-to make a decision between you and himself/herself. Which means that the guide must choose between doing absolutely the most useful thing for you and doing some thing much less good for you but better for his or her pay. And having been in the business enterprise, I know lots of consultants that chose the latter many times and seldom any at all that chose the latter rarely.
Always remember Jim Cramer, some body that developed approximately fortune of $100 million by manipulating rich consumers, reported, Whats important when you're in hedge fund mode, is to not do such a thing remotely sincere, as the truth is indeed against your view. And when you read Cramers statement again, realize that this mentality predominates among almost all investment business experts, not only Jim Cramer..