When most Investment Analysts give investment picks for your portfolio, they never return to them and tell you how well they have done. Jim Cramer, star of the "Mad Money" TV show on CNBC, a NBC financial cable station is always giving investment picks for investors to invest in. Recently he gave a "buy" signal on a major bank only 4 days before it went insolvent and went out of business. That was really embarrassing for Jim.
Most media promote their "Jim Cramer" types as experts in the field. The Harrisburg Patriot News Business section in January told the public to stay away from Corporate bonds and buy stock or mutual funds. I sent in a "Letter to the Editor" with a rebuttal to the article but since I am not a corporate client, it was dismissed and not printed. These media analyst act has if they know all about the market and how to make money in them. In reality, they know how to sell the public on investing in mutual funds and in major corporate stock issues. They take their invest picks from the firms investment analyst. Usually they give their picks depending on who they have for corporate clients. If "XYZ" is trying to raise capital and is an important client for the firm, "XYZ" would make that firms "buy" list. This is why the investment brokerage firm did not see the stock market crash of 2007 through 2009. This is why the bear market of 2001 escaped them. Here is why the public lost over a trillion dollars in retirement money.
If you or I would rob the bank with a mask and a gun, we would go to jail for 25 years. But if the "Jim Cramer’s" of the investment world would take your money, they stand to gain a bonus and a better contract.
I gave a list of bonds from December 2008 to April 2009 that I invested in personally and told the public that they should do the same. From January 31, 2009 to May 2, 2009 (90 Days) the Dow Jones Industrial average went from 8,174.73 to 8,016.95, down 1.97%. In that same 90 days, my bond portfolio went up 13.43%. This is 13.43% after all brokerage and other fees were paid.
So I pose two questions to the investing public. One, if the media analysts know so much, why are stocks performing so badly? Two, why aren’t the media analysts promoting investing in corporate bonds (not bond mutual funds) for the investing public?
Saturday, May 2, 2009
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