PietraHelgeson150

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 explained this practice is illegal, but easy-to do 'because the SEC [Securities Exchange Commission, the U.S. regulatory body] doesn't understand it.' Moreover, since the truth is really against your view, the excessively rich former hedge fund manager boasted, Whats important when you're in hedge fund mode, says Cramer, would be to not do such a thing remotely genuine. For all those of you that remain skeptical concerning the fraudulent methods of investment professionals and organizations, maybe a partners entrance may finally tell you. Why these reports even make big statements is beyond me. As a former industry expert myself, Ive been saying for years that the investment industry is high in investment professionals, every one from economic consultants to private wealth managers to professional money managers, hard at work weaving the emperors new clothes. Nevertheless, 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 fable The Emperors New Clothes allow me to summarize it for you. Sometime ago in a fabled kingdom, there lived an emperor whose vanity was legendary. Two swindlers, Luigi Farabutto and Guido, knew they can capitalize on this emperors character defect to produce a huge pro-fit. Dig up supplementary resources about softship meetness intercomplexity supertension by browsing our lofty article directory. They acknowledged the emperor and told him that they'd sew him the finest suits of an extremely costly special cloth that would be invisible to everyone 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. The men came ultimately back, and afraid to inform the emperor they could not see the garments, told the emperor that the suits were probably the most beautiful suits they had ever seen. He did not want to acknowledge that he could not see the clothes for fear of being considered stupid and of low character, If the emperor went along to see the Farabuttos, knowing that his servants was able to see the clothes. So he proceeded to permit himself to be dressed in clothes to get a parade through town and proceeded to walk through town in his underwear. When he discovered a boy that pointed at him and said, But he's no garments, only then did the emperor understood that he'd been swindled. It is amazing if you ask me that many people, even those with thousands at investment organizations, actually think that their advisor or their organization has their best interests at heart. In fact, within my set of 101 Reasons Why Managing Your Own Money is the Only Method to Build Wealth at http://www.smartknowledgeu.com, Ive given visitors 101 reasons why this is very, very rarely the case. Of-course, every one thinks that their counselor or financial consultant could be the one guy or girl at their organization that really cares about their financial security. If perhaps they can spend only one day in the trenches making use of their expert, they would 999 times out of 1,000, experience a completely different story. Ill exchange still another method I learned about a top economic consultant in a top Wall Street firm which should get your attention. That top economic consultant managed many million dollar accounts. The way he'd get wealthy people to trust him was to show for them his ability to pick stocks that performed phenomenally well. To do this, he'd look for a very thinly traded stock that traditionally have been very unstable. He would pay-for a list of high-net worth clients, contact ten people o-n that list and let them know he was a top financial consultant at his company. Obviously, this could not have the attention of those rich people since they didn't know him from Adam. Knowing they would be hesitant to hand their money to him and begin a relationship with him, he'd acknowledge their reservations. He'd then check out keep these things write the name of this volatile stock that he'd investigated on a bit of paper. He'd then tell these 10 individuals that his stock finding method was so good that he was 100 certain that if they invested in this stock, they'd produce a healthier pro-fit in a short period of time. Then he would just take the next 10 people on the list, repeat this con, but rather, tell these 10 people that he was 100 certain that they'd make lots of money from this stock if they purchased put options on this stock. Before stock moved 25 approximately then he would wait weeks. He would call the 10 individuals who he told he was 100 sure they'd make lots of money from buying the stock, when the stock acquired. If the stock lost 25 or so, he would forget about the 10 wealthy people he stated would call the 10 people he told to short the stock and make plenty of cash by purchasing this stock. When he called these people they were amazed that he was right regarding an investment that they'd never heard about, and many decided to give plenty of cash to him. I tell you this story because plans like this, designed to make it appear as if these investment professionals, and I use this term very gently, really know what they're doing, when actually, they're trying to sell simply emperors clothes to you. The truth is if you've been reading my blogs for a while now, you know that the strategies of resource allocation, diversification, and low volatility are typical only emperors clothes as well. Though they might sound good to you, thats precisely what the top of most sales methods accomplish. They're made therefore well that they allow you to feel comfortable and in control. The very best emperors clothes offer customers without the customers even knowing they had been highly selected objectives. Just research our Educational resources and Down the Rabbit Hole articles at http://www.theundergroundinvestor.com to find out why most of the best-known investment techniques to-day are nothing more than emperors clothes. My estimate of the percent of professionals that weave emperor clothes every-day handy to buyers is 99-years. So that upon presentation to you, they appear to be the finest financial strategies designed especially for you, their finest consumers they incorporate systems, marketing strategies, and sales strategies in complex ways. Only in the long run, these methods keep you financially bare, so much so, that even young ones with no level of complexity, would comment upon seeing these investors that so willingly let themselves be studied for a ride, But he has no money. In-fact, just a week ago, I read this article with statements from the CEO of the organization that manages the accounts of a few of the richest people in The Us by what it takes to seriously build wealth. A lot of his statements, though emperors clothes arguments that a lot of people accept as truth, were so ludicrous that I laughed aloud, knowing that he had been able to place emperors clothes for your top tier of richest customers in The Usa. Don't get me wrong, it's not that in my opinion that everyone available is out to con you out of your hard earned money. There are a few truly good, honest people available. However, on account of how companies compensate their economic professionals, this much is inevitable. There will come a time, and probably repeatedly, when a expert will need to make a decision between you and himself/herself. Which means that the consultant will have to choose between doing the absolute most useful thing for you and doing something much less good for you but better for their salary. And having experienced the business enterprise, I know plenty of specialists that chose the latter often and rarely any at all that chose the latter sometimes. Bear in mind Jim Cramer, some body that developed around fortune of 100 million by manipulating rich clients, mentioned, Whats impor-tant when you're in hedge fund method, is never to do such a thing remotely truthful, because the truth is indeed against your view. And once you read Cramers statement again, realize that this mentality predominates among almost all investment business professionals, not only Jim Cramer..