International Law

It?s Funny Because It?s True: Goldman Sachs Edition

By Stan

Sometimes “professional” investment research resembles little more than a day trader rag with nicer charts and fancier wording to make the reader feel less guilty and more professional about the kind of “investing” he or she is actually performing. Thus we point to Goldman’s (GS) recent China “Portfolio Strategy” dated July 31st where they tell us to basically keep buying the Chinese market based on government support for the economy and a “favorable liquidity setup”. We’re told to buy on dips, “stay engaged” (i.e. keep generating commissions), and trade earnings surprises. Is this professional investing or what your college roommate was doing during the dotcom bubble? It’s hard to tell the difference.

Heh heh. Read the entire post, it’s quite entertaining. It also gives a bit of an insight into what happens during a bubble in the financial services industry.

I didn’t know it was possible, but this actually makes me even more cynical than I was before. Amazing.

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Full post as published by China Hearsay on August 04, 2009 (boomark / email).