This a followup to the Goldman Sachs predictions made this year.
On June 21, 2012 the financial markets sold off partially because of the Goldman Sachs sell recommendation on the S&P 500. The timeline below is further evidence that no one can predict the future, especially not the Wall Street bullies.
Just three months later…
On March 21, 2012 the S&P 500 closed at 1393….May 1, close 1406 a 0.93% increase….June 21 close 1326, so in summary from the strong buy in March to the strong sell recommendation in June the market dropped -4.8%.
Well on Friday August 3, 2012 the buy stop limit was met when the S&P 500 closed at 1391and Goldman Sachs investors experienced another loss. This time, an additional -4.5% loss.
For those of you unfamiliar with short, the definition of short is the trader borrows the investment from the brokerage firm, sells it and then waits to buy it back at a lower price. Instead of buy and then sell, the trader sells and then buys.
This is another example that NO ONE can predict the future. A prestigious firm like Goldman Sachs is no exception. Of course, Goldman Sachs makes money on every trade, via, trading fees.
To succeed long term in investing forget forecasts and predictions. You must own equities….globally diversify….rebalance.
You must avoid giving your profit to the Wall Street bullies