Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

The Dirty Secret Behind Goldman Sachs’ Conviction Buy List

admin by admin
April 9, 2013
in Uncategorized
0
0
SHARES
12
VIEWS
Share on FacebookShare on Twitter

Money Morning Article of the Week

by David Zeiler, Associate Editor, Money Morning

When Goldman Sachs (NYSE: GS) kicked Apple Inc. (Nasdaq: AAPL) off its celebrated Conviction Buy List, casual observers might have seen the move as yet another blow to a battered stock.

But don’t be surprised if Apple stock rallies in the months ahead.

That’s because when you look at the record, most stocks that get dropped from Goldman’s Conviction Buy List – a frequently updated list of equities the bank says will outperform the market – don’t falter.

In fact, over the past six months, most of the stocks that Goldman has booted off the Conviction Buy List have gone up, and several have actually outperformed the market.

That might seem strange but for Goldman’s checkered past.

Reasons to Doubt Goldman Sachs’ Conviction Buy List

It was exactly one year ago that a former executive director at Goldman, Greg Smith, wrote a scathing op-ed piece in The New York Times that described in lurid terms how the bank exploited its own customers, derisively referred to as “Muppets,” to enhance profits.

And Goldman is also known for (though not alone among the big investment banks) advising clients to make one move while taking the opposite side of the trade.

Money Morning Capital Wave Strategist Shah Gilani explained:

“The truth is that Goldman Sachs and the rest of the big banks on Wall Street invariably ‘blow up’ customers to make money for themselves.“

With such a dubious track record, it should come as no surprise that many stocks that fall out of favor with Goldman – by getting dropped from the Conviction Buy List – suddenly start to fare much better.

Over the past six months, the Standard & Poor’s 500 index is up about 7.5%. Here are a few stocks Goldman demoted last fall and how they’ve performed since:

  • Travelers Cos. Inc. (NYSE: TRV): Removed Oct. 2; the stock is up 21.33% since.
  • CNO Financial Group Inc. (NYSE: CNO): Removed Oct. 3; the stock is up 14.9% since.
  • Westlake Chemical Corp. (NYSE: WLK): Removed Nov. 13; the stock is up 10.41% since.

Since Jan. 1, the S&P 500 is up about 9%. Here are a few stocks Goldman knocked off its Conviction Buy List in January:

  • Campbell Soup Co.: (NYSE: CPB): Removed Jan 11; the stock is up 28.49% since.
  • Packaging manufacturer Rock-Tenn Co. (NYSE: RKT): Removed Jan. 15; the stock is up 16.24% since.
  • Cloud computing software company NetSuite Inc. (NYSE: N): Removed Jan 18; the stock is up 16.93% since.

Goldman Sachs Conviction Buy List a Lagging Indicator

Another suspicious pattern in the timing of when Goldman takes a stock off its Conviction Buy List has to do with how late the bank seems to make its call.

Just take Apple, for instance. Apple stock plunged more than $250 over a period of several months, but Goldman stubbornly kept it on the Conviction Buy List.

Only this week, long after the damage had been done, did Goldman finally get around to dropping it.

Or look at what happened with The Boeing Co. (NYSE: BA). Goldman dropped Boeing on Jan. 16, following several weeks of a worsening issue with batteries in its new 787 Dreamliner catching fire.

Not surprisingly, Boeing stock is up 10.14% since. So Goldman was late on the bad news that dropped the stock, and deprived any investors foolish enough to follow its advice of the rally that followed.

And there’s the crazy story of Chipotle Mexican Grill Inc. (NYSE: CMG). After a bad earnings report last year, Goldman kicked Chipotle off the Conviction Buy List – but only after the stock dropped 18% to $316.98, a one-day loss of about $87.

Not to worry, though. Goldman reinstated Chipotle on Jan. 4, after the stock had recovered to $341.27.

The truth is, that fishy smell coming from Goldman Sachs’ Conviction Buy List is just one reason to be wary of big banks.

Gilani said:

“Not only do big banks like Goldman run roughshod over their customers (trading partners) and clients (banking relationships), the big banks manipulate markets, industries, economies and countries to fatten their already gigantic bonus pools and personal fortunes.“

Related Articles and News:

  • Money Morning:
    Why Crime Pays for “Too-Big-To-Fail” Banks
  • Money Morning:
    “Jerry Maguire” Waves Goodbye to Goldman Sachs (NYSE: GS) and its Muppets
  • Money Morning:
    The Goldman Rule: Don’t Let This Puppet Master Pull Your Strings

Previous Post

Michael Pettis: China is NOT Headed for Disaster

Next Post

Terminal Velocity (3) – The Pyramid Scheme

Related Posts

How First Republic's Befriending Of The Wealthy Led To A Crisis
Business

How First Republic’s Befriending Of The Wealthy Led To A Crisis

by John Wanguba
March 31, 2023
How Is Donald Trump's Indictment Affecting The Crypto Space?
Econ Intersect News

How Is Donald Trump’s Indictment Affecting The Crypto Space?

by John Wanguba
March 31, 2023
What Does CFTC's Lawsuit Against Binance Mean For Coinbase?
Business

What Does CFTC’s Lawsuit Against Binance Mean For Coinbase?

by John Wanguba
March 31, 2023
Will The Fed Rate Hikes Crash The Stock Market?
Economics

Will The Fed Rate Hikes Crash The Stock Market?

by John Wanguba
March 31, 2023
How To Protect Your Portfolio Against Inflation And Interest Rate Hikes
Econ Intersect News

How To Protect Your Portfolio Against Inflation And Interest Rate Hikes

by John Wanguba
March 31, 2023
Next Post

Terminal Velocity (3) – The Pyramid Scheme

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe finance FTX inflation investment market analysis Metaverse NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • How First Republic’s Befriending Of The Wealthy Led To A Crisis
  • How Is Donald Trump’s Indictment Affecting The Crypto Space?
  • What Does CFTC’s Lawsuit Against Binance Mean For Coinbase?

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish