Loading ...The dirty little secret is out, Goldman Sachs manipulates the market and front-runs the public. This can be said with 100% certainty! In fact, we will go step by step and explain how they do it. Furthermore, we will give an actual example of a stock that was manipulated by Goldman Sachs.
On a weekly basis, Goldman Sachs stock analysts offer stock “tips” at a gathering the firm calls a “trading huddle”. After receiving feedback within the firm, the participants evaluate the tips. The tips are assessed for the probability of acceptance by the public. Tips are prioritized, selected and a distribution method formulated.
The following day, employees at the research department at Goldman Sachs call on their prime and most privileged clients chirping the same tip. Naturally, they call enough clients (number said to be usually over 50) assuring that the stock heads the way the tip indicates. Considering that Goldman Sachs has a virtual monopoly after the Lehman Brothers and Bear Stern bankruptcies, this is easily done. In addition, the firm utilizes their own trading desk (yes, GS traders are instructed to also play the tip).
The tips are typically exclusive for a few weeks. Then, the not so prime (but paying) Goldman Sachs clients receive reports on what stocks to buy and sell. Unfortunately for them, the tip already has had a slight run up prior to the regular clients receiving the information. Finally, months later after the stock had a significant move (usually 20%), Goldman Sachs upgrades (or downgrades) the stock informing the public of their opinion. That’s when the public usually jumps in and pushes the stock a little higher (or lower) before losing their money. This clearly explains why stock traders that invest based on upgrades or downgrades lag behind other trading methods. By the time “the public” is informed of the tip, Goldman Sachs and their prime and paying customers have already acted on the tip.
FYI – There are websites that show again and again that doing the reverse of what Goldman Sachs tells you to do is the best way to make money!
An example of Goldman Sachs manipulation was with Janus Capital Group. Janus Capital Group was rated a “neutral” in early April 2008. At the same time however, an internal meeting that month indicate that dozens of Goldman Sachs traders were saying that the stock would head higher (company documents show). The very next day, employees at Goldman called about 50 favored clients with the same tip, including hedge-fund companies Citadel Investment Group and SAC Capital Advisors, the documents indicate. Goldman Sachs Group Inc. research analyst Marc Irizarry’s readers however didn’t find out he was bullish until his written report was issued six days later, after Janus shares had already jumped 5.8%. A few weeks later came the upgrades before the big market crash.
This content is restricted to site members. If you are an existing user, please login. New users may register below.