Friday, June 21, 2013

Expectations: Everyday investors vs the Professional 'I' Investors

When it comes to playing the market, what is the difference between the everyday person and the professional 'I' Investor a la the 'Big Boys'?

It usually comes down to expectation.

Everyday people expect that their success/failure in the market will be based on their personal knowledge and skill..  Their ability to study companies and their history, the ability to figure out a future trend..

They also expect there will be risk involved.  Even a supposed sure-thing company like say Coca Cola or McDonald's isn't guaranteed to perpetually expand its profits.  All companies have lulls.
And everyday people have an expectation that if they do their due diligence, talk with the right people for advice and stay continually abreast of how their portfolio is doing, that ultimately they will see a profit on their investment.

All that is quite nice.

Here's what the professional capital-I Investors and corporate bigwigs expect--

They expect all investments to be guarantees of successful profit taking.  They expect Zero risk.. And to ensure this, they expect everything to be telestrated; to be laid out in the open for them.

Think of it as a continual cheat-sheet.
They expect the Federal Reserve to 100% of the time lay out its detailed blueprint of what its doing with interest rates and QE infinity so they can dump stocks or purchase on dips before the everyday person has a clue.

The goal is always to profit off the everyday person and never be holding the empty money bag at the end of the trading day.

They also expect to have major influence in the Fed's decision making.  If the chairman hints at doing 'X' and its not good for an Investor's self-interest, then co-ordinate a massive dumping of stock to scare him into choosing option 'Y' or staying the course...
Like what's happened the past few days when Bernanke gave merely a hint that he was thinking of possibly maybe sorta-kinda in the future perhaps tapering the $85billion/month asset purchases.

Remember, when you break that astronomical figure down based on a 30 day month, it comes out to the Fed spending just under $2 million dollars EVERY SECOND to financially enrich banks, corporations and the Investor class.

If you were profiting from that, you'd make a big pungent stink as well to prevent the spigots from being turned off and Fuck the overall US populace and future generations who will be paying the debts many times over...
And everything everyday investors are told is always in stark contrast from what the Big Boys do...

The average Joe and Jane is told to 'Buy Buy!'  or 'Hold'.. Never sell..

On the financial news networks and publications last night at 4:15p in the wake of that 350+ pt drop, the big Push was to calm the everyday folk; to tell people not to sell and its looking like a good opportunity to 'buy on the dip' because 'it is nothing more than an expected correction'  or 'profit taking'.

Meanwhile, how exactly did the market drop nearly 600pts in two trading days?

Obviously there was A LOT of selling, and not by everyday folk--  it was banks, corps and Investors.
They sure don't mind selling to preserve their financial self-interests.

Why does no one ever advise an everyday investor the same?

The day you hear a Jim Cramer of CNBC's Mad Money tell everyday people to sell the stocks is probably the day you'll see him suffer on-air the fate of James Gandolfini  (RIP and respect to him.. Not to Cramer.. he's a scavenger; a jackal)

Another quickie example is bankruptcy--  why should any individual ever feel ashamed or embarrassed to file for personal bankruptcy when companies do it all the time and proudly?
Their motto is the stale Godfather mantra 'Nothing personal- just business'..  Well if you're having hard times financially and thinking of defaulting or filing Chapter 7, make it your mantra as well!!   Do it guilt free...

But we digressed as we tend to do on occasion...

We at A&G have a lot of negative feelings toward the whole corrupt, manipulative finance market apparatus including its lying propagandistic media.

We know how it works-- the ins and outs.   Its a vile, soul-draining place to work and an even more dangerous place to place your nest egg.
The stock market has always been corrupt and aimed at enriching those at the top, but the modern market of the post Lehman years is far worse...

Its all orchestrated; a fixed game top to bottom..

Everyday people really have no chance unless they are willing to consume themselves in the field-- to spend literally hours and hours a day studying trends.  Reading not simply the Wall Street Journal and the Financial Times, but half dozen or more financial trade and commodity publications daily.

And not be afraid to reading contrarian points of view.

It is much like an abyss.. And to truly have a fighting chance to make it long term, you have to be willing to step into the muck and mud and shit which is international banking and finance.
Its not enough anymore to study company A and see how their stock's been trending over the last 6-12 months.. Chumps do that.

So.. as they say in latin, 'Caveat Emptor'  or 'Buyer Beware'.

Now, go do something fun and fulfilling this weekend..  All this wretchedness and corrupt twists & turns which make up markets and investing will still be here Monday morning
** 2p Update..  The market was in down territory pretty much all day until 30 min ago and now at +35 as of this moment...

Why?

This Business Insider headline will explain it all:

"LADIES AND GENTLEMEN: We Have A Jon Hilsenrath Headline, And The Market Has Come Storming Back"

Hilsenrath is Bernanke's direct mouthpiece (and probably bedtime whore as well) so when the Fed doesn't like the way the market is moving, they float rumor and lies to J.H. with the purpose of calming the markets...

"Sources at the Fed were not shocked by the market's reaction to the tapering signal given by the central bank on Wednesday, but that lasting losses in stocks and rising yields could end up being harmful"

And thus Ta-Da!.. the rumor headline... One of many ways this market is orchestrated and telestrated so the professional 'I' Investor and corporations/banks know everything in advance and are never harmed.

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