Posted on 05/11/2010 3:42:10 AM PDT by Scanian
It's a classic abusive relationship.
The person with power and money kicks around the weaker person in the relationship, then brings home flowers as a peace offering.
And things go well for a while until the one in control decides to knock the vulnerable party around once again.
And the cycle of abuse continues until the stronger person finally mends his ways, or the weaker person leaves -- no longer believing the rewards from the partnership are worth the pain.
I'm describing how Wall Street treats small investors.
"Even in abusive [situations], the relationship is not always bad. There are good times, quiet times. And the person is hoping it will go back to the good times," said Gerald Landsberg, professor of Social Work at New York University.
(Excerpt) Read more at nypost.com ...
True enough. As both KD and Zerohedge has said, you’re a fool to try to either invest or trade in this market right now. Anything resembling fair play and rationality has gone right out the door.
News yesterday: STOCKS SURGE ON EUROPEAN BAILOUT!
News today: STOCKS TO SLIDE ON UNCERTAINTY OVER WHETHER BAILOUT WILL WORK OR NOT!
No joke...exact news.
This is the best market for the little investor.
The only market to play is to day trade, it’s as simple as that.
People who hand their money over to money managers are doomed to failure. You don’t really think they have your best interest at heart do you?
The only game in town is to day trade the market similar to poker.
In my mind these pieces of paper really have no value. It is my job by due diligence, to read each business daily & blogs, plus international, domestic & political news to watch for trends.
“You don’t really think they have your best interest at heart do you?”
Actually they do because their pay is determined, in part, by the amount of assets under their direction. So, if their clients assets increase, so does their compensation.
“Actually they do because their pay is determined, in part, by the amount of assets under their direction. So, if their clients assets increase, so does their compensation.”
That’s the old model of pension management you refer to.
Today through ‘hypothecation agreements’ (where exchange brokers are the actual owners of the assets and the individual or money manager are merely account holders) and through control of trading markets through high frequency trading (HFT) and black pools, the pension funds and the individuals have no chance to preserve capital other than to buy private assets or go to the bond markets.
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