Investment or trading profit will be proportional to one's financial education, the abilities of the school or teacher chosen, and to a greater degree, the accuracy and ability of methodologies taught. Finally, one must begin to apply what has been taught, based on what really works and employing the best financial methods for maximum efficacy
Complimentary Education (1) Erred Market Methodology, Myth and Manipulation Exposed
1. Research Methods - In the first of our educational series, KRTT takes aim at exposing myths surrounding financial research methods used on Wall Street, Bay Street, and economic research widely disseminated by government.
A primary danger for the investing public is in trusting or thinking that government economists and their financial advisers know more than what they really do.
Consider, the elite colorful multi-paged fundamental and sector research documents written by so-called experts, and the savvy television, internet and marketing material used by large financial corporations. All of this marketing agenda, on multimillion dollar advertising budgets paid for by their customers (instead of reducing banking or commission fees) is fully designed to project and portray their image of influence, trust, power, safety, and a sophisticated high-level financial knowledge.
Well, what if you found out that your banker, and financial adviser had taken you exactly down the wrong financial research road. What if, they too relied on misleading financial information, flawed research documents, or placed their faith and your money in investments based on inadequate data that never should have been extrapolated in the first place.
Worse, what if they as professional advisers (and thus you) were relying on completely inadequate theories that were destined for failure, while investing your hard earned capital?
Under such circumstances, it would be no surprise that the results could be less than ideal. Keep in mind, that even the most flawed and erroneous of financial methods can easily hide or be disguised during a bull market or booming economy. But then, what happens to your capital when things economically worsen or do not work as planned? Naturally, they will tell you to hold your investments long term. After all, as long as they can make you listen to and believe in their financial superiority and investing theories - they can exert control (and thus profit) on your hard-earned capital.
In a nutshell, we begin our educational journey into understanding the financial truths, by reading the editorial below (free download), based on systemic financial research methods used by bankers, brokers and governments. After you have finished reading this first editorial, ask a few good questions, or even debate with your peers or friends (or your financial adviser) what you may have possibly learned.
If you conclude as many will do, you will probably think twice, before again putting too much faith or confidence into your financial institution, their research methods, or your adviser.
Frankly, a great deal of so-called financial experts and economists invariably claim to know more than they really do. Who knows; - they may even have their own self-interest or ulterior motives beyond what you were aware of.
Download the Adobe PDF described above by clicking the link below or, simply paste the link into your web-browser.
www.krtt.com/download/01_KRTT_Complimentary_Financial_Education_Research_Methods_P1.pdf
2. Stock Market Integrity & Manipulation - Many wonder about the overall lack of integrity or immoral ethics on Wall Street in the USA, or Bay Street here in Canada. Many also ask, if the equity markets are even being manipulated?
The sad answer is yes, but one needs to fully understand the circumstances and how to overcome market immorality. This will be discussed in later sections. Yet, without a doubt, financial markets are frequently being manipulated and are immoral in a variety of ways and illicit methods.
Although financial regulation and certain laws exist, they are seldom if ever used, especially in Canada, which has an extremely lax justice system and little to nil enforcement against sophisticated white collar criminals.
As one institutional morally wrong example, Canadian financial institutions sell fixed income investments on a yield basis to their clients. They intentionally do this without telling their customer of the commissions or profit they earned in that single transaction. The commissions on strip coupons and residuals can be absolutely massive and have been intentionally hidden for decades, because frankly, if customers knew the truth, - they would be outraged.
Canada and the USA are not alone in immoral banking transactions. In the UK, financial institutions and banks immorally sold payment protection insurance (PPI) with massive profits until they were caught cold-handed by government regulators, and were subsequently forced to give back billions of pounds to their customers.
Surely from our KRTT viewpoint, the North American financial markets and lax securities regulators clearly deserve the ever-increasing public anger, the suspicion, and public distrust in recent years. Yet change will only occur when enough customers get angry and demand change.
Governments too have little or no incentive to regulate, because they too participate in financial intervention and benefit by taxing profits of business. Yet banks, as the most profitable institutions in the world have some of the greatest ability to hide assets, and defer earnings in what should be termed as black-box balance sheets. The bonuses and salaries paid to financial executives speak volumes about Wall and Bay Street ethics and intentions.
In yet another criminal-in-nature example, tipping (the illegal sharing of insider information not yet known to the public shareholders) is probably the most systemic white-collar crime in Canada and the USA. In Canada, tipping, creates a non-level playing field for criminal profit well over what the honest investing public receive, and yet has never been properly enforced. Tipping is not prosecuted, even when considerable serious criminals are turned into the RCMP, even with specific evidence detail and reliable witnesses.
There is far too illicit material to discuss in this introductory area, but in our first download on this topic, we wanted to begin by addressing stock market manipulation by government(s).
Sadly, governments too have decided to intervene into capital markets making capital markets far less than freely and fairly traded. The following document is perhaps one of the most famous in recent years, because it was published by a large Canadian financial institution and took direct aim at exposing government manipulation in the stock markets.
Although Central bankers and governments use deceitful and hidden language such as liquidity injection, that is far from the whole truth - because the manipulation is essentially carried out off of government premises at investment banks and Canadian dealers .
We think this editorial will begin to teach readers about the now popularly named Plunge Protection Team(s) PPT that secretly operate in the USA, in Canada, in Japan and elsewhere.
Download the Adobe PDF described above by clicking the link below or, simply paste the link into your web-browser.
www.krtt.com/download/02_KRTT_Complimentary_Financial_Education_Visible_Hand.pdf
How good is gaining a financial education from KRTT? Imagine the possibilities?
