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Last month a major story that made the rounds within the monetary media was Jim Cramers (of the Street.com) statement that some hedge fund managers spread false rumors about an organization to large trading desks and the media to drive-a stock price lower. He explained this practice is illegal, but easy to do 'since the SEC [Securities Exchange Commission, the U.S. regulatory body] does not understand it.' Furthermore, the excessively wealthy former hedge fund manager featured, Whats important when you are in hedge fund function, says Cramer, will be to not do any such thing remotely honest, because the fact is really against your view. For those of you that remain skeptical regarding the dishonest techniques of investment professionals and businesses, probably an insiders admission may finally tell you. Why these reports also make big statements is beyond me. As a former industry expert myself, Ive been saying for a long time that the investment industry is high in investment specialists, everyone else from economic consultants to private wealth managers to professional money managers, hard at work weaving the emperors new clothes. Nevertheless, only once a huge mouth like Cramer speaks of the dishonesty that netted him great success does it attract attention. For those of you not familiar with the myth The Emperors New Clothes allow me to review it for you. Sometime ago in a kingdom, there lived an emperor whose vanity was famous. Two swindlers, Guido and Luigi Farabutto, knew that they can capitalize on this emperors character flaw to make a huge profit. They acknowledged the emperor and told him that they'd sew him the best suits of an extremely expensive special material that would be invisible to everyone that was ridiculous or of low character. The emperor, fearing that he would not manage to see the clothes, sent two of his men to go see the suits. The men came ultimately back, and afraid to inform the emperor they could not see the clothes, told the emperor that the suits were one of the most beautiful suits they'd ever seen. If the emperor went to see the Farabuttos, knowing that his servants was able to see the clothes, he did not wish to acknowledge that he couldn't see the clothes for fear of being considered stupid and of low character. Therefore h-e proceeded to permit herself to be dressed in clothes to get a march through town and proceeded to go through town in his underwear. When he discovered a boy that said and pointed at him, But he has no garments, only then did the emperor realized that he had been swindled. It is amazing to me that many buyers, even individuals with millions at investment businesses, actually think that their counselor or their company has their best interests at heart. In-fact, within my list of 101 Reasons Why Managing Your Own Money is the Only Solution to Build Wealth at http://www.smartknowledgeu.com, Ive given visitors 101 reasons why that is very, very rarely the case. Of course, everyone thinks that their advisor or financial consultant could be the one guy or girl at their firm that actually cares about their financial security. This powerful company website essay has endless disturbing aids for the meaning behind this activity. They would 999 times out of 1,000, watch an entirely different story, only if they can spend just 1 day in the trenches using their specialist. For extra information, please check-out http://www.linkemperor.com. Sick exchange yet another method I found out about a top economic consultant in a top Wall Street firm that should get your attention. This leading economic guide maintained several million dollar accounts. The way in which he'd get wealthy people to trust him was to demonstrate to them his ability to select stocks that performed phenomenally well. To do this, he would locate a very thinly traded stock that historically were very unstable. He would purchase a list of high-net worth customers, contact twenty people on that list and tell them he was a top financial expert at his firm. Of-course, this would not have the attention of those wealthy individuals simply because they did not know him from Adam. Knowing they would be unwilling to start a relationship with him and hand their income to him, he would recognize their concerns. He'd then proceed to keep these things publish the name of this share that he'd investigated on a bit of paper. He would then tell these 1-0 people that his stock choosing technique was so great that he was 100 sure that if they dedicated to this stock, they would create a healthy profit in a brief period of time. Then he would just take another 10 people on the record, repeat this scam, but instead, inform these 10 people that he was 100 certain that they would make lots of money from this stock if they bought put options on this stock. He then would wait many weeks until the stock moved 2500-3000 approximately. If the stock obtained, he would call the 10 people that he told he was a large number of certain they'd make lots of money from purchasing the stock. He'd just forget about the 10 wealthy individuals he stated would call the 10 people he told to short the stock and make lots of money by buying this stock, if the stock lost 25 or so. When he called these people they were amazed that he was right regarding a stock that they had never heard about, and many agreed to give a lot of money to him. Discover further on a related wiki - Browse this web page link emporer. I tell you this story because systems like this, made to make it appear as if these investment experts, and I use this expression very gently, really understand what they are doing, when the truth is, they're trying to sell only emperors clothes to you. The truth is if you have been reading my sites for a while now, you understand that the methods of resource allocation, diversification, and low volatility are all just emperors clothes as well. Though they might appear good to-you, thats precisely what the top of most revenue methods complete. They're made therefore well that they cause you to feel comfortable and in control. The very best emperors clothes sell customers without the customers even realizing they have been highly selected goals. Only search our Educational methods and Down the Rabbit Hole articles at http://www.theundergroundinvestor.com to find out why all the most widely known investment techniques today are nothing more than emperors clothes. My estimate of the of professionals that weave emperor clothes each day to hand to people is 999-year. They incorporate plans, marketing strategies, and income strategies in complex ways to ensure that upon presentation to you, they seem like the finest financial strategies made especially for you, their finest consumers. Only ultimately, these methods leave you financially bare, so much so, that even kids with no financial level of sophistication, would comment upon seeing these people that so willingly let themselves be studied for a journey, But he's no wealth. In reality, just last week, I read this report with claims from the CEO of the organization that manages the records of a number of the richest people in The Usa by what it requires to genuinely build wealth. Lots of his claims, nevertheless emperors clothes reasons that most of the people accept as fact, were so foolish that I laughed aloud, knowing that he had been able to incorporate emperors clothes for your top tier of wealthiest consumers in America. Do not misunderstand me, it's not that I believe that everyone in the business is out to scam you out of your hard earned cash. There are several truly good, honest people in the commercial. However, because of how companies pay their economic professionals, that much is certain. There will come a time, and most likely several times, whenever a expert will have to make a choice between you and himself/herself. Which means that the guide will have to choose between doing absolutely the most useful thing for you and doing something much less good for you but better for their paycheck. And having experienced the business, I know plenty of consultants that chose the latter often times and seldom any at all that chose the latter occasionally. Bear in mind Jim Cramer, some body that built around fortune of 100 million by adjusting rich consumers, said, Whats crucial when you're in hedge fund function, is not to do any such thing remotely honest, as the fact is so against your view. And when you read Cramers record again, understand that this mentality predominates among almost all investment industry experts, not just Jim Cramer..