Beware of financial pundits and the stock market
Beware of financial pundits writing about the stock market. Via Barry Ritholtz is New York magazine's treasury of bad 2008 investment recommendations.
• Jon Birger, senior writer, Fortune Investors Guide 2008 Smart investors should buy [Merrill Lynch] stock before everyone else comes to their senses.” Merrill’s shares plummeted 77 percent.• Elaine Garzarelli, president of Garzarelli Capital, Business Week’s Investment Outlook 2008
Buy some of the most beaten-down stocks, including those of giant financial institutions such as Lehman Brothers, Bear Stearns, and Merrill Lynch.
As of January 1, none of these firms will still exist.• Sarah Ketterer, CEO of Causeway Capital Management, Fortune Investors Guide 2008
“Fannie Mae and Freddie Mac have been pummeled. Our stress-test analysis indicates those stocks are at bargain basement prices.”
Fannie and Freddie had lost 90 percent of their value.• Jon Birger, senior writer, in Fortune Investors Guide 2008
Our bet is that in a stormy market investors will gravitate toward, GE, the ultimate blue chip.
GE’s stock price tumbled 55%, and it’s on the verge of losing its triple-A credit rating.• Archie MacAllaster, chairman of MacAllaster Pitfield MacKay in Barron’s 2008 Roundtable
“Bank of America will [not cut its dividend], I think they’ll raise it this year. My target price for the stock is $55.”
BofA share price now hovers around $14, and it has slashed its dividend in half.• James J. Cramer, “Future of Business” New York Magazine
“Goldman Sachs… finishes the year at $300 a share. Not a prediction — an inevitability.”
Goldman Sachs’ share price was $78, and the firm announced its first quarterly loss — $2.2 billion.
Comments
Along with companies like Lehman Brothers, Merrill Lynch and AIG, one of the biggest casualties of 2008 was financial punditry. Having missed the biggest meltdown in 75 years, you'd think these charlatans would tuck their tails between their legs and keep their mouths shut. But no, here they are, spewing advice again, just like nothing ever happened. Why anyone pays them any mind is an utter mystery.
Posted by: penny pincher | January 3, 2009 12:27 AM
Yes, this is the right time to invest in stock market.
Posted by: gustongroves | January 3, 2009 4:58 AM
Nice Post. We really have to be careful in investing our money since financial crisis is a big threat for those big investors in the market. We have to think twice before going to invest for something and make sure you can earn from you have invested of.
Posted by: AlRich | January 15, 2009 6:52 PM
FBI LAUNCHES SEARCH FOR ALLEN STANFORD'S FELLOW FRAUDSTERS
Now that Elandia founder and Ponzi schemer Allen Stanford is in the hands of the FBI, the Feds are looking for his network of swindlers including Sydney D. "Trip" Camper III. According to SEC filings, Trip Camper was forced to resign from Elandia by Stanford. Before the bad news could spread, Trip Camper found a new victim in the form of a private Los Angeles company with aspirations to go public. Thanks to his new partner in crime, Ed Berkhof, Trip Camper ruined this honest company as he did Datec, the Ahkoy family business. Since becoming victims of Elandia fraud, the Ahkoy Family is suing Elandia in Pacific and Florida courts. Meanwhile, Trip Camper remains at large. Recent articles reveal that "FMC Telecom has acquired SMS..." and lists Ed Berkhof as the appointed COO. FMC Telecom founder Frank Cassidy is either Ed Berkhof's NEW partner in crime or he has unfortunately fallen victim to investment fraud orchestrated by Ed Berkhof.
The FBI is looking to prosecute thieves like Allen Stanford, Bernie Madoff, Trip Camper and Ed Berkhof who are leaving a path of destruction and a wake of fallen victims of fraud.
View SEC links
http://www.secinfo.com/d14D5a.v6Q98.c.htm
http://www.secinfo.com/d14D5a.v6Q98.d.htm
Posted by: sirgeraldbirkin | August 7, 2009 10:52 PM