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> Nearly every single financial company (including JPM, Morgan Stanley, etc) offer premium stock tips through there analysts... Well, they're expected to do th

• arcticbull 5y ago
  Not to mention, are they really doing it in good faith? Back in the GFC days, Goldman made headlines for just trading against their clients. Rather, I guess, for saying the quiet part out loud. > Thomas Mazarakis, who heads Goldman’s fundamental strategies group, told select clients in an email that his unit often provided investment ideas that the firm had already traded on and the firm sometimes took the opposite approach, betting against particular instruments recommended by the group, the Times said. > “We may trade, and may have existing positions, based on trading ideas before we have discussed those trading ideas with you,” the paper quoted Mazarakis as writing in the email. [1] Would seem a good way to monetize your audience is to (a) get paid to (b) take positions and then (c) control the narrative around your positions - both publicly and to paying customers to gin the position up. [1] https://www.reuters.com/article/us-goldmansachs-trades/goldman-exec-says-firm-gained-from-trading-against-clients-idUSTRE60C17220100113 https://www.reuters.com/article/us-goldmansachs-trades/goldm...
  • throwaway2037 5y ago
    Your last sentence is perfect: pithy. This same strategy is, of course, also used by short sellers. Larger hedge funds have a PR team that works to increase media coverage of their short positions. See: Bill Ackman and Herbalife.