The Outsider Code Finds Goldman Sachs First Quarter Profit Streak Out of Reach for Everyday Investors
Goldman Sachs Inc. reports earning a profit everyday in the last quarter for itself. However, individual investors who followed the firm’s investment recommendations did much worse.
Goldman Sachs recommended top trades for 2010 turned out to be duds seven out of the nine times, according to data complied by Bloomberg based on Goldman Sachs research sent May 17th 2010.
The Goldman Sachs winning quarter profits are said to be from capturing bid- offer spreads when its traders act as intermediaries for clients said Gary Cohn, the firm’s president and chief operating officer, said last week in New York. Cohn confirmed that proprietary trading isn’t a main driver of earnings.
Goldman Sachs generates more revenue from trading than any other Wall Street firm. This first quarter of 2010, Goldman Sachs earnings of $7.39 billion in revenue that came from trading fixed-income, currencies and commodities overshadows its next closest rival, Charlotte-based Bank of America which made only $5.52 billion during the same period. In stock investing, Goldman Sachs’s $2.35 billion in revenue came to be 50% greater than its nearest competitor.
Goldman Sachs had a record setting year only losing money on 11 days out of the last 12 months of trading, said Cohn to investors at the May 11 conference in New York. Based on this good news, he said that uncanny streak of success refutes suspicions that the bank depends on proprietary bets with its own money. Instead he said “It is implausible that a proprietary-driven business model could be right 96 percent of the time,”. Instead, he said the “simple answer” is that the firm makes money by capturing bid-offer spreads when acting as an intermediary for client trades.
These are investing profits that are out of reach for ordinary investors who are outside of the wall street investing circles, says http://outsidecode.org/ creator Maggie Brown.
Last month a U.S. Senate subcommittee released an internal email from Goldman Sachs executives that have been grappling with questions about whether they’re better at making money for the firm than for their clients.
Brown says The Outsider Code is presenting a free video for ordinary investors to make the kind of record setting profits like the Goldman Sachs latest quarter earnings. The Outsider Code reveals hidden methods the elite rich use to grow their money while individual investors are left feeling helpless with dismal returns on their investments based on institutional investing recommendations.
Visit http://theoutsidecode.org/qmd for more information.
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