Tag Archive: Hedge Fund


“When are we going to realize in this country that our wealth is work. We are workers. And by selling this idea, ‘Hey man, I’ll teach you how to be rich.’ How is that different than an infomerical?” — Jon Stewart to CNBC’s Mad Money host and former Goldman Sachs hedge fund manager, Jim Cramer

No truer words were ever spoken.

During the course of his 2009  infamous viral dressing down of CNBC’s “Mad Money” Jim Cramer, Comedy Central’s Jon Stewart took direct aim at the notion of get-rich-quick, particularly in times of an economic meltdown.

Some acquaintances of Almost DailyBrett have inquired and even critiqued your author’s daily devotion to CNBC, the repeated clicks on Charles Schwab’s retirement IRA platform, and the checking of the value of the Eugene, Oregon residence on far-less-than-perfect, Zillow.

Yours truly is a dedicated capitalist, devoted to maintaining and growing wealth under the banner of Buy Low Sell High.

Buying low and selling high generates … profits. Yes, profits. Sorry Bernie and Elizabeth.

Some vehemently argue that nothing-is-guaranteed Wall Street is more or less, gambling.

Almost DailyBrett disagrees with this conclusion, but clearly recognizes that gamblers are energized and engaged. No one plays poker and puts their chips on the roulette table and cavalierly accepts the verdict. They play to win the game.

As Herm Edwards said: “You play to win the game. Hello? You play to win the game.”

And more times than naught, gamblers lose. The staggering accumulated wealth and gaudy palaces along the Las Vegas Strip are monuments to the … losers.

Don’t investors want to win too? There are no guarantees on Wall Street. Invested money is placed at risk. Doesn’t that make Wall Street the greatest casino of them all?

Achieving the spread between buying at a lower price and eventually selling at a higher price is more … much more … than simply investing in a 401k or IRA and forgetting about it. ‘Ahh … just let the pension fund chiefs or the mutual fund managers worry about it.’ Don’t worry.

Ladies and gentlemen, we are talking about your nest egg. Growing, caring and nurturing your tomorrow is a business. In effect, it is the ultimate business.

You want to ensure that you live a long and happy life, and that you expire before your money runs out.

The Wall Street crash of 2007-2010 is still fresh for most of us. Ten years later, we are enjoying the fruits of the longest bull market in American history with a record low, full-employment Department of Labor unemployment rate of 3.5 percent.

Time to put up our feet? Hell, no.

Manage Rather Than Be Managed

“Stewart had no special Wall Street knowledge, as he was the first to admit. What he had was a nose for a scam, and an uncanny ability to articulate what the rest of us were feeling.” — New York Times columnist, Joe Nocera

Recognizing that Jon Stewart is a comedian, not a stock market analyst or technician, he is nonetheless still right: “Our wealth is work.”

Part of the task before us is to understand completely a very simple question: How does a company makes money?

Please allow Almost DailyBrett to speak ex-cathedra: If you do not understand how a publicly traded company makes mula (e.g., McDonald’s makes hamburgers and feeds 1 percent of the planet each day), then you are gambling on a stock, not investing.

Remember posing this question to my classes about Bitcoin.

Some students volunteered that Bitcoin is a crypto-currency … whatever that means. “It’s been going up” (and down). Currencies are associated with countries (i.e., greenback, USA; Euro, EU; Pound Sterling, UK). What country backs Bitcoin?

Nada.

Therefore in your author’s portfolio, there is no place for Bitcoin or any other Ponzi Scheme.

Stewart publicly undressed Cramer because the former believed the latter’s network (e.g., CNBC) was not doing enough to protect retail investors, particularly those who were experiencing the daily assault on their portfolios between 2007-2010.

Most of us wish to forget that time, and yet we took the steps to manage our accounts and protect our nest eggs. We chose to manage instead of being managed.

Maintaining and building wealth requires us all to work, to stay alert, and have a healthy batting average when it comes to making our financial decisions.

Stay alert. Stay engaged. Stay the course.

http://www.cc.com/video-clips/iinzrx/the-daily-show-with-jon-stewart-jim-cramer-pt–2

http://money.com/money/3982267/jon-stewart-5-best-money-moments/

https://almostdailybrett.wordpress.com/2019/09/15/how-blue-cross-saved-my-bacon/

“You can’t foment. You can’t create an impression a stock is down. You do it anyway because the SEC doesn’t understand it.” – Former Goldman Sachs hedge fund manager Jim Cramer

“Apple is very important to spread the rumor that both Verizon and AT&T have decided they don’t like the phone (iPhone). It’s very easy to do. It’s also easy to spread the rumor the phone is not ready for Macworld.”  — Cramer explaining how shorting hedge-fund managers drive down a company’s stock price through rumor mongering

“I want the Jim Cramer of CNBC (Mad Money host) to protect me from that Jim Cramer (Goldman Sachs hedge-fund manager) – Comedy Central’s Jon Stewart

Many of us watched Jon Stewart take apart Jim Cramer on Comedy Central’s The Daily Show With Jon Stewart. The legendary 2009 interview went viral, including Cramer’s bragging about short selling, even among those who do not subscribe to the notion of buying low and selling high.

Here’s a predictable sports metaphor that brings into question the morality of short selling.

Every sports fan knows there are teams that far-too-many of us love to hate (i.e. New England Patriots, New York Yankees, Los Angeles Todgers …). We will happily pop open a cold one and sit in front of the Hi-Def and root against these teams and many others. We want them to lose, and lose big.

Having acknowledged this indisputable fact of life, will we spend our hard-earned money to travel to their respective stadia or watch them on our home team fields, courts, ice rinks solely to indulge in an exercise of Schadenfreude, delighting in their misery when they lose? You are rooting against them and not necessarily for your team.

Don’t we have better things to do with our money and time than negative rooting?

Moving from metaphor to reality, should the cunning few take their discretionary investment dollars and place a trade – a short sell – with the intent of cashing-out based not upon a publicly traded company’s stock rising, but instead losing value for the vast majority of investors and their employees?

Before going any further, Almost DailyBrett must acknowledge that short selling is perfectly legal (it shouldn’t be), but the question remains: Is it moral? Yes, some may be wondering how morality and Wall Street work in tandem. Believe it or not, there is synergy when it comes to investing and morality.

For example, each of America’s 5,900 publicly traded companies on the NYSE or NASDAQ is legally required to practice fiduciary responsibility (don’t glaze over). Translated: Every company is obligated to do the best job possible to drive the top line (revenues) and raise the bottom line (net income or loss).

The beneficiaries of fiduciary responsibility are America’s Investor Class, the 55 percent of our nation that invests in mutual funds, bonds or stocks. When “Wall Street” is attacked, the hopes and dreams of literally millions for a comfortable retirement, their children’s college education, their donations to worthy charities, their once-in-a-lifetime vacations, are under siege as well.

The Big Short

“Stormy weather in Shortville … “— Tesla CEO Elon Musk tweet mocking short sellers

The literally millions of short trades fly directly in the face of the aspirations of middle-class and lower-upper class investors, who realize you can’t finance dreams through negligible bank interest rates and ping-ponging real estate. That’s why they turn En-masse to equities, bonds and mutual funds (e.g., IRAs and 401Ks).

For example, there are those (including the author of Almost DailyBrett) who invest in Elon Musk and Tesla. They are supporting the development of electric cars, ion lithium batteries and solar power, all intended to transport millions and provide energy – all without contributing to climate change.

And yet 31 million of Tesla’s (NASDAQ: TSLA) 163.1 million shares are sold short or about $8.46 billion in market capitalization or value that these traders are hoping will simply plunge big time to their greedy benefit.

Alas for them and hooray for the rest of us the Tesla short sellers are taking it in the shorts.

As we saw in the Oscar-nominated for Best Picture, The Big Short, there were cunning and callous short sellers who bet big time – and won – against the U.S. real estate market and thousands of underwater and underperforming mortgages.

They won, while literally hundreds of thousands lost their homes or were trapped in properties they could not afford, thus triggering the Great Recession of 2007-2008.

Almost DailyBrett believes the government regulates enough thank you very much. But should the feds (e.g., SEC, DOJ, FTC) take a long-and-hard look at short selling?

If the goal of the shorts is pure unmitigated greed, while literally hundreds of thousands suffer and see their hopes and dreams dashed, then short selling is not only wrong morally, but it should be frickin’ illegal as well.

http://www.goldmansachs.com/

http://www.biography.com/people/jon-stewart-16242282

http://www.cnbc.com/jim-cramer/

http://www.cc.com/video-clips/iinzrx/the-daily-show-with-jon-stewart-jim-cramer-pt–2

http://www.cc.com/video-clips/gliow5/the-daily-show-with-jon-stewart-jim-cramer-pt–3

https://www.nytimes.com/2015/12/11/movies/review-in-the-big-short-economic-collapse-for-fun-and-profit.html?_r=0

http://www.reuters.com/article/us-tesla-stocks-idUSKBN17522H

https://finance.yahoo.com/quote/TSLA/key-statistics?p=TSLA

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