So I am sitting here today watching the Goldman Sachs hearings. The dog and pony show we call “congressional hearings” won’t result in any substantial changes in the environment you invest in and illustrates completely why you need to make your own stock market investing decisions. I will be the first to admit that these deals can be quite complex but what I can tell you is this. At the heart of what was discussed today was that Goldman was selling interests in securities that they were also “shorting” or hoping that they would go down in price. When the big dogs on Wall Street start betting that something will go down in price, you can bet that the chances are greater that it will than if you or I thought it would. Particularly because they can also make it happen. What they were trying to show through these hearings, was that Goldman was “pushing” their clients to buy these products that they had no faith in.
But is this really new? The answer is no. Let’s face it. The market lends itself to being manipulated and no matter how many hearings they have, that’s not going to change. People have to learn this one investing rule:
DO WHAT THEY DO AND NOT WHAT THEY SAY
Brokers for years have been pushing products that their managers have been told to promote to create demand for the product to the public. See my posts about stock market manipulation and my post on KillerPennyStocks.com review for more details on how this might take place.
You can avoid these investment traps by learning how to invest with the CANSLIM strategy. It teaches you how to watch the market and individual stocks to identify buying and selling buy the professional money managers. Learn to make your own investment decisions and choose your own stocks. Don’t let others lead you to them. If you do, you subject yourself to being manipulated.
Let me also be the first to predict that the current lawsuit against Goldman Sachs will be settled with a fine and no change in the way they do business. But don’t let that be the case with you. Start your study of the stock market and become your own decision maker.
Good luck and have a great day!
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This is truly a great conclusions “Start your study of the stock market and become your own decision maker”. The stock market always presents an intimidating and confusing environment even for an expert investor and trader. For a beginner in the stock market it could be daunting task to invest or trade. So, one should do their own homework on this by reading books, magazines and online articles on stock marketplace tutorials etc..
What’s ironic is that in the hearings, the chairman of the committee flat out asked if was a conflict of interest to push one product to your clients while you do the opposite. But other than a scolding, I wouldn’t expect much to change in that regard. Wall Street and the speculators it draws have been doing that stuff for years.