Goldman Profited on its Trades, Clients Lost on its Advice

Discussion in 'Financial Planning' started by Tropo, 20th May, 2010.

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  1. Tropo

    Tropo Well-Known Member

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    Goldman Sachs Group Inc. racked up trading profits for itself every day last quarter.
    Clients who followed the firm’s investment advice fared far worse.
    Seven of the investment bank’s nine “recommended top trades for 2010” have been money losers for investors who adopted the New York-based firm’s advice, according to data compiled by Bloomberg from a Goldman Sachs research note sent yesterday.

    Clients who used the tips lost 14 percent buying the Polish zloty versus the Japanese yen, 9.4 percent buying Chinese stocks in Hong Kong and 9.8 percent trading the British pound against the New Zealand dollar.
    more... Goldman Profited on its Trades, Clients Lost on its Advice - Bloomberg
     
    Tropo, 20th May, 2010
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    It makes you wonder why anyone would bother to be in the "advice" business.
     
    Simon Hampel, 21st May, 2010
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  3. BillV

    BillV Well-Known Member

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    because there are customers willing to pay?

    Now if those customers were large fund managers with a lot of cash or corrupt governments then it could be a very profitable business....:eek: Edit for everyone involved except for the people who entrusted them with their money
     
    Last edited by a moderator: 21st May, 2010
    BillV, 21st May, 2010
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  4. Chris C

    Chris C Well-Known Member

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    Because it's very lucrative to be in the "advice" business...

    What really makes you wonder is why anyone would take advice from anyone who has a vested interest in making money at your expense...

    That's why bank reports and guidance are worthless, or at very best need to viewed with an understanding they are biased.

    Even the RBA isn't exactly a "straight shooter".
     
    Chris C, 21st May, 2010
    #4