| |
| |
|
Investing Information |
|
|
|
The Conflict of Interest Game
Disgruntled investors are going after Wall Street once again, this time accusing one of investment bank Morgan-Stanley's high-tech mutual funds of making biased stock picks. Recent lawsuits allege the Morgan Stanley Technology fund was influenced to buy and hold stocks of companies that delivered huge investment banking fees - or could potentially bring big business - to the investment bank. According to the lawsuits, the Morgan Stanley fund followed the biased recommendations of the firm's analysts - decisions that have cost shareholders millions of dollars since the portfolio's October 2000 inception. The fund lost 48 percent in 2001 and was down another 50 percent during the first nine months of 2002. While Morgan Stanley strongly denied the allegations, I fail to see how the management of the fund is somehow distinct from the other divisions of Morgan Stanley. Ultimately, they all work for the same boss. The suits further claim that the tech fund failed to disclose that the firm had investment banking ties with a number of companies whose stocks were part of the portfolio. They also failed to reveal that those links could affect the fund's buy or sell calls. Why bring all this up? For one thing, it is interesting to note that Morgan Stanley offered four of these types of funds in October 2000. Just around the time when we sold all of our positions (Oct. 13, 2000) and it became clear, at least to those of us who were tracking long-term trends, that a major trend change had taken place. More recently in the news it's been Merrill Lynch who had a questionable deal involving transactions with failed energy trader Enron. Of course, the financial services industry regulates itself so well, that an $80 million payment to the SEC is sufficient to wrap up this case without admitting or denying wrongdoing. What's the moral of this story? While it is impossible to predict these alleged conflict of interest schemes, it is definitely possible to follow a disciplined approach and be on the "right" side of the market so you can avoid jumping aboard a sinking ship. About The Author Ulli Niemann is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He eluded the bear market of 2000 and has helped hundreds of people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: www.successful-investment.com ulli@successful-investment.com
MORE RESOURCES: Billionaire Barry Sternlicht Is Heavily Invested in This 15%-Yielding Dividend Stock for Steady Income Growth Yahoo Finance If You Invested $10,000 in The Walt Disney Company in 2013, This Is How Much You Would Have Today The Motley Fool 5 Things to Invest in When a Recession Hits Yahoo Finance House Dem pushes legislation against big oil 'profiteering' after investing in major oil companies Fox News Investing in the Digital Age: Building Wealth Through Saving and ... Mississippi State University Investing with convictions, not mandates, is here to stay Washington Examiner Investing.com Acquires StreetInsider.com in Bid to Empower Retail Investors with Premium Hedge Fund-Level Content Feeds Yahoo Finance Investing Strategies For High-Net-Worth Individuals Salon Privé Magazine 5 Tips to Investing in Your 30s, According to Tori Dunlap The Motley Fool 3 ETFs That Will Reduce Your Banking Sector Exposure Investing.com Should Investors Buy the Dip in Chewy Stock? The Motley Fool Why geographical diversification when investing - CNW Network caribbeannationalweekly.com Stop fighting culture wars about private investing decisions Newnan Times-Herald Jennifer Sullo Joins Earth Finance Climate Investing Practice Longview News-Journal Investing in budget-friendly professional development BizTimes Milwaukee Investors Pour into Money Market Funds Amid Bank Crisis The Motley Fool OpenView goes bigger with seventh fund, closing on $570M to invest in business software startups TechCrunch Investing in Coactive Andreessen Horowitz First came Angel City FC. Now, meet Monarch Collective, a new way ... Los Angeles Times The ChatGPT of Investing: 5 Stocks to Buy Now Business Insider Investing in Character.AI Andreessen Horowitz Investing in Wingspan Andreessen Horowitz 3 Risks to Pay Attention to When Investing in Alphabet The Motley Fool SEC Urges Caution on Crypto Investing Investopedia Women aren't investing at the same rate as men. Here's why it matters—and how the gap can be closed CNBC 3 of Warren Buffett’s biggest investing mistakes—including the ‘dumbest’ stock he ever bought - CNBC Investing in Believer Andreessen Horowitz Evonik Industries (ETR:EVK) shareholders have endured a 20% loss from investing in the stock five years ago Simply Wall St Is Real Estate the Next Shoe to Drop? Investing.com 3 Key Ratios to Watch for Clues About Market's Next Move Investing.com Investing in CCP Games Andreessen Horowitz The Fundamentals of Value Investing The Motley Fool What's the Best Treasury ETF? 7 Options for Investors | Investing ... U.S News & World Report Money Buy the Dip: 3 Top Stocks for Patient Investors The Motley Fool 5 Ways to Prepare Your Portfolio for Black Swan Events U.S News & World Report Money Here's Warren Buffett's No. 1 Pick for Investors Right Now The Motley Fool Investing in life sciences R&D by design MIT Technology Review What is ESG investing and why do some hate it so much? The Associated Press What's the Best Silver ETF to Buy? 7 Contenders | Investing | U.S. ... U.S News & World Report Money Bitcoin gains as investors diversify amid worries about banking system; U.S. equity futures rise Yahoo Finance Financial Sector Teetering on Historic Technical Support Investing.com 5 things you may have missed in investing this week Yahoo Finance Gold Struggles for Direction After Advance Pauses Investing.com A Black Eye For ESG Investing? BP Stock Jumps 20% After ... Investor's Business Daily |
|
|
|
RELATED ARTICLES
Ask The SEC Who is the SEC and why should I ask them anything? The Securities and Exchange Commission in Washington, DC is the government bureau that regulates the securities industry. They make the regulations that all stock exchange listed companies, brokerage houses and mutual funds must follow. Retirement - Its Sooner Than You Think!! (Honestly) Many people hear "retirement" and think- what? 401K? Roth vs. Traditional IRA? Stocks, bonds, mutual funds? Do they?Or do many people put money away according to the suggested amount and then simply hope that when retirement comes all will work out?One report I read estimated that 66 million Americans have put away a Whopping $0 towards retirement. Mutual Fund Selection Made Simple By Indexing! Non-indexed mutual funds try to keep it secret that actively managed mutual very funds rarely do better stock market indexes. The higher fees of the managed funds really make it hard for these funds to out compete indexed funds. Creating a Financial Future--Putting Your Plan Into Action Part 2 Real Estate can be a useful tool for investing. The simplest real estate investment is not truly an investment, but a cost-reduction - that is owning your own home. Beginning Investor - Investment Terms Over the course of the past two months, readers have brought to my attention that there is a steep learning curve for investment terminology. That's why the focus of this month's Beginning Investor column will be investment terminology. The Power of Small Numbers: Trading Success is Based on Consistency, Not Home Runs Online trading is so seductive - just sit, click, and rake in the profits! But as anyone who has ever seriously attempted online trading will probably tell you, it's just not as easy as it sounds.Many beginning traders are seduced by the lure of the "home run", that big trade that makes you an instant millionaire and retires you overnight to your own private island paradise. Five Sure Fire Way to Secure Your Financial Future "You can be poor when you're young, but you can't be poor when you're old." That was the tag line used some years ago in a financial services television commercial. Creating a Financial Future - Putting Your Plan Into Action Part 1 This column has previously discussed "picturing the future that we desire", and outlining a plan to achieve it. We mentioned that the plan must include goal-setting, measurement, and implementation. Trading Tips No 7: Developing a Casino Mentality for the Day Trader I submit that the successful day trader would profit well to adopt a casino mentality. At first glance, this sounds reckless and nothing more than a gambling attitude - but it's not. Forex market offers opportunity and information The forex market is what is called an international exchange currency market, where currencies are exchanged on a daily basis. There are five forex market centers around the world - New York, London, Tokyo, Frankfurt and Zurich. Buying a Home - Your BIGGEST Investment This column has often focused on intangible investments like stocks that a young investor might hold in their portfolio. While these are one of the most important components of an investment plan, it is not the dominant one for most young people. What Age Should I Start Saving For Retirement? Ask this question to 100 people and you will receive 100 very different answers. The fact of the matter is there is no right age to start. Part II of Day Traders and Swing Traders and Options? Maybe! Before every protective put trade it is possible to calculateyour anticipated maximum loss. Use the formula: (stock priceminus strike price) plus option price. Use of a Franchise Business as a Family Tax Planning Strategy Suggesting the use of a franchise business as a vehicle for family estate and tax planning. Specifically using as an example, The Car Wash Guys, a portable car wash franchise, where you will be purchasing a completely designed and outfitted car wash truck and the right to develop a specific city or regional area with out of pocket start-up costs between $25-50,000. Copy Cat or How to Use a Successful Trading System How many books have you read about successful traders? How they did this or that and made a fortune and are still doing it. You say to yourself, "I'm going to follow his method and get rich". Easily Finding A Good Stock There is a tremendous amount of software,complicated high priced newsletters, radio andTV stock pickers and Internet web sites thatwill help you find a stock that is going to makeyou rich.The problem is you don't know if this is talkor are these gurus putting their own money wheretheir mouth is. Discover the Foundation of Retiring Wealthy - The IRA! Let me tell you about some legal ways to avoid getting taxed on profits from the stock market. You can make a lot of money now with the stock market as low as it is at this time as I teach you in my home study course. Maniac Investment Let's first understand what maniacmeans. According to Webster a maniac is "mad;raging with madness; raging with disorderedintellect". Learn How to Lose and Risk Management One of the leading traders on Chicago Mercantile Exchange, because of a single trade lost everything!For all of his years of experience and money, he had failed to master the most important concept in trading: Risk Management!Each trader seems to have his own unique way of identifying market opportunities. One buys a stock in the hopes of never having to sell it, while another might hold a position in the market for a day or even just a few hours. Advice for International Investors on How to Safeguard Their Profits What are the risks?Today, investors are increasingly turning to global markets to find opportunities for profit, giving urgency to the issue of protecting returns from foreign exchange risk. While there are many excellent investment opportunities to be found all over the world, volatility in the currency markets can and does affect the profitability of these investments.
|
| home | site map |
| © 2006 |