Did you open this email hoping to see the top trades for October?
And how you can make “Big Bucks” while other investors fall by the wayside?
That is exactly what companies like Goldman Sachs, JP Morgan, Merrill Lynch, etc. hope you do.
And that’s why they use headlines featuring “Top Trades” so you can make money.
Sorry, we’re not trying to be cynical here…
Well, maybe we are…kinda…sorta…
But do you honestly believe the Boyz in the “Club” want you to make money by following their recommendations?
If you do, then you are no different than the 99% of investors who are always wrong.
Because the 1% NEEDS the 99% to be wrong for them to make fortunes…at YOUR expense.
The truth is whenever you read how some company is boasting/encouraging you to buy certain stocks, it’s what the industry calls “Talking your book.”
And in its simplest form, “talking your book” is how the Boyz get you to buy what they are selling.
It’s the oldest trick in the book.
The Top Trades for This Month…
And it starts out with an investment firm putting out timely research reports or “White Papers” with many compelling reasons why you should either buy or sell certain stocks.
But the idea behind the scenes is how an investment house looks at their current holdings and thinks, “Hmmm, let’s get our retail division all pumped up to buy XYZ stock while we dump it from our institutional division.”
Beware of Top Trades for…
So, when you hear an analyst say or write “Top trades for…” or “the best picks for the month of…” you might want to consider doing the opposite.
Cue up: Everyone’s favorite Uncle Warren Buffett.
Buffet is not as obvious as Goldman or JP Morgan but he’s just as guilty when it comes to talking his book.
And the classic example of that is when he said that the small investor shouldn’t buy individual stocks.
Instead, they should buy an S&P ETF…for diversification.
Remember, this is a guy who made his fortune by owning individual stocks and NOT owning S&P ETFs.
So, why would he recommend them…and how is that “talking his book?”
It’s because he owns a large position in companies like Blackrock and Vanguard…who happen to be the largest issuers of S&P ETFs.
So, when more people take his advice and buy ETFs, Buffett profits as the price of Blackrock and Vanguard go up.
Get the picture?
BTW, for the most part, we hate ETFs.
In the meantime, you should avoid Blackrock (BLK) like the plague because of their involvement in Ukraine.
It’s not going to end well for their shareholders.
Read about it in our October issue of “…In Plain English” (HERE).
And share this with a friend…especially if they own ETFs and constantly read articles about the “Top Trades for…”
They’ll thank YOU later.
We’re Not Just About Finance
But we use finance to give you hope.
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