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A big story that made the rounds within the monetary media last month was Jim Cramers (of-the Street.com) statement that some hedge fund managers spread false rumors about a business to large trading desks and the media to drive-a stock price lower. He explained this practice is illegal, but easy to do 'because the SEC [Securities Exchange Commission, the U.S. regulatory body] doesn't understand it.' Furthermore, the acutely rich former hedge fund manager boasted, Whats crucial if you are in hedge fund style, says Cramer, will be to not do such a thing remotely sincere, as the truth is so against your view. For all those of you that remain skeptical regarding the fraudulent methods of companies and investment experts, perhaps a partners entry may finally tell you. Why these reports also make big headlines is beyond me. As a former industry expert myself, Ive been saying for many years that the investment industry is full of investment experts, everybody else from economic consultants to individual money managers to professional money managers, hard at work weaving the emperors new clothes. Nevertheless, only when 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 myth The Emperors New Clothes I want to summarize 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 they could capitalize on this emperors character defect to produce a huge pro-fit. They acknowledged the emperor and told him that they would sew him the finest suits of an extremely expensive special fabric that would be invisible to anybody that was ridiculous or of low character. The emperor, fearing he would not be able to see the clothes, sent two of his men to go see the suits. Discover more on the affiliated paper - Click here When Linking Create Strong Point And Des - Wedding Blogs - Project Wedding. The men came ultimately back, and afraid to inform the emperor they could not see the garments, told the emperor the suits were one of the most beautiful suits they had ever seen. He didn't want to admit that he could not see the clothes for fear of being considered foolish and of low character, once the emperor went to see the Farabuttos, understanding that his servants were able to see the clothes. Therefore h-e proceeded to permit herself to be dressed in non-existent clothes for a parade through town and proceeded to walk through town in his underwear. When he came upon a young child that pointed at him and said, But he's no clothes, only then did the emperor understood that he'd been conned. It's incredible to me that many buyers, even individuals with millions at investment organizations, actually think that their consultant or their company has their needs at heart. Actually, in my listing of 101 Reasons Why Managing Your Personal Money is the Only Method to Build Wealth at http://www.smartknowledgeu.com, Ive given 101 reasons to viewers why this is very, very seldom the case. Needless to say, every one thinks that their advisor or financial expert could be the one guy or gal at their firm that really cares about their financial security. They would 999 times out of 1,000, witness an entirely different story, only if they can spend just one-day in the trenches using their expert. Sick exchange still another method I found out about a top economic expert in a top Wall Street firm that should get your attention. This top financial expert maintained many million dollar accounts. The way in which he'd get wealthy investors to trust him was to show for them his ability to select stocks that performed phenomenally well. To do this, he'd find a very thinly traded stock that traditionally were very risky. He would buy a list of high net worth clients, phone ten people o-n that list and tell them he was a premier economic consultant at his firm. Of course, this would not obtain the attention of these rich people simply because they did not know him from Adam. Knowing they would be unwilling to begin a relationship with him and hand their income to him, he would recognize their reservations. He'd then go to keep these things publish the name of this stock that he had reviewed on the bit of paper. He would then tell these 1-0 individuals that his stock choosing methodology was so good that he was 100 certain that if they committed to this stock, they'd create a healthier profit in a short span of time. Then he would just take the following 10 people on the number, repeat this scam, but rather, inform these 10 people that he was 100 sure that they'd make a lot of money from this stock if they purchased put options on this stock. Get more on a partner wiki by visiting continue reading. Then he would wait many weeks before stock moved 25-pip approximately. He'd call the 10 people who he told he was one hundred thousand certain they'd make lots of money from purchasing the stock, when the stock gained. My girlfriend learned about find out more by searching webpages. He would forget about the 10 wealthy individuals he promised would make lots of money by purchasing this stock and call the 10 people he told to short the stock, if the stock lost 25 approximately. They were astonished that he was right regarding an investment that they'd never been aware of when he called these people, and many decided to provide a lot of money to him. I tell you this story because strategies like this, made to make it look as if these investment professionals, and I use this term really lightly, really know what they're doing, when the truth is, they're attempting to sell simply emperors clothes to you. The truth is if you have been reading my sites for some time now, you know that the strategies of asset allocation, diversification, and low volatility are typical only emperors clothes as well. Although they may sound great to you, thats precisely what the top of income strategies achieve. They're designed therefore well that they allow you to feel comfortable and responsible. The very best emperors clothes offer customers without the customers also realizing they was highly selected targets. Only search our Down the Rabbit Hole and Educational methods articles at http://www.theundergroundinvestor.com to find out why every one of the most commonly known investment strategies today are simply emperors clothes. My estimate of the of professionals that weave emperor clothes every day handy to people is 99-100. Get extra information on linkempereor by going to our lovely paper. They place techniques, marketing strategies, and sales strategies in complex ways to ensure upon presentation to you, they appear to be the finest economic strategies designed specifically for you, their finest consumers. Only ultimately, these strategies leave you financially naked, so much so, that even young ones with no financial level of sophistication, would comment upon seeing these investors that so willingly let themselves be taken for a drive, But he's no money. In-fact, only the other day, I read this article with statements from the CEO of a firm that handles the records of a number of the richest people in America by what it will take to truly create wealth. Lots of his statements, though emperors clothes arguments that a lot of people accept as fact, were so foolish that I laughed aloud, knowing that he'd been able to incorporate emperors clothes for your top tier of richest clients in America. Don't get me wrong, it's not that I believe that everyone in the commercial is out to scam you out of your hard earned cash. There are a few truly good, honest people in the commercial. Nevertheless, due to how companies compensate their financial specialists, that much is certain. There will come a time, and probably repeatedly, whenever a consultant will have to make a decision between you and himself/herself. Which means the specialist will need to choose between doing absolutely the most readily useful thing for you and doing something not as good for you but better for his or her salary. And having been in the business, I know lots of professionals that chose the latter often times and seldom any at all that chose the latter infrequently. Always remember Jim Cramer, some body that created an estimated fortune of 100 million by manipulating rich consumers, reported, Whats impor-tant when you are in hedge-fund mode, is not to do any such thing remotely genuine, because the truth is really against your view. And once you read Cramers statement again, realize that this thinking predominates among virtually all investment industry specialists, not merely Jim Cramer..