![]() If they truly had their clients’ best interest, they would have not made it into a public relations move.īut this is how it works on Wall Street. Once again, it’s all about marketing, not the best interest of the individual investor. See for yourself what the market is saying. In fact, while on the outer fringe, most financial professionals would consider a 20% decline a correction. You can’t direct investors to do something with a statistical chance of 20% unless you have another motive … getting managed accounts.Īnd anyway, the last time I checked, a 12% decline is considered a normal correction from record highs. So they will give Goldman the opportunity to manage their money. Why would Goldman deliver that message? Well, they have one purpose in mind – to scare individual investors into thinking that they are not capable of managing their own money during the decline. I am bothered by the fact that Goldman is now using the fiscal cliff as a fear tactic to turn over clients’ accounts, thereby costing them money. Basically, it doesn’t matter if you are a monkey or professional analyst – the chance of you being right is 50%. I think most of you already know my feelings about directional calls made by the financial industry. Remember the vicious debt ceiling fight last summer? Well, it’s back.Īnd so is the opportunity for financial institutions to peddle fear.Īs the market has moved higher throughout the year, Kostin has repeatedly backed his 1,250 call to the detriment of those who have shorted the S&P 500 based on Kostin’s frequent mentions of a decline.īut that’s not what bothers me about Goldman Sachs and their chief equity strategist. His stated reason: “Political realities and last year’s precedent suggest the potential that Congress fails to reach agreement in addressing the fiscal cliff is greater than what most investors seem to believe based on our client conversations.”Īs a refresher, the “fiscal cliff” is the expiration of payroll, capital gains and dividend tax cuts at the end of this year. The statistical chance of that actually happening – based on options at the 1,250 strike price that expire in December – is 20% (I’ll get to the significance of this later). Essentially, Kostin is predicting a 12% decline over the next four months. The strategist fervently defended his year-end S&P 500 target of 1,250 despite the SPX’s recent climb above 1,400. Last week Kostin – who replaced famed perma-bull Abby Joseph Cohen – urged Goldman clients to immediately pull their money out of the stock market to avoid the so-called fiscal cliff. Since it is a totally random system, you and your friend are unlikely to get the same stock.Įach person is only eligible to open 1 Robinhood account, so you are only able to earn 1 free stock.You better be, according to Goldman Sachs chief U.S. Robinhood chooses stocks that are among the most popular owned by Robinhood users to give out. Share value can fluctuate based on market movements, so that should be considered as well. The shares are chosen randomly from their inventory of settled shares. Once the stock hits your account, you will be able to keep it forever or you can sell it after 2 trading days. 1% chance the free stock has a value between $50 and $200.1% chance the free stock has a value between $10 and $50.98% chance the free stock has a value between $2.50 and $10.You could get lucky and end up with a much more valuable free stock. However, most people will end up getting a stock with a value of $5 to $10 (98% chance of this). The value of the stock is random, ranging from $5 to $200. In order to get the free stock from Robinhood, you have to open a new brokerage account and link your bank account. ![]() Win Up To 5 Free Stocks Worth $3 To $2,000 Each Win Up To 12 Free Stocks Worth Up To $3,000 Each 1 Free Fractional Share Worth $5 To $200, 18 Companies To Choose From
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