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Last month a major story that made the rounds within the monetary media was Jim Cramers (of the Street.com) statement that some hedge-fund managers spread false rumors about a company to large trading desks and the media to drive a stock price lower. He said this practice is illegal, but easy to do 'since the SEC [Securities Exchange Commission, the U.S. regulatory body] does not understand it.' Furthermore, because the fact is indeed against your view, the extremely wealthy former hedge fund manager featured, Whats crucial when you're in hedge fund setting, says Cramer, would be to not do any such thing remotely sincere. For anyone of you that remain skeptical about the fraudulent practices of investment professionals and companies, perhaps a colleagues admission will finally tell you. Why these stories also make big statements is beyond me. As a former industry core myself, Ive been saying for a long time that the investment industry is filled with investment specialists, everyone else from financial consultants to individual wealth managers to professional money managers, hard at work weaving the emperors new clothes. But, only if a huge mouth like Cramer speaks of the dishonesty that netted him great success does it attract attention. For those of you not familiar with the myth The Emperors New Clothes I want to summarize it for you. Way back when in a fabled kingdom, there lived an emperor whose vanity was renowned. Two swindlers, Guido and Luigi Farabutto, knew they could capitalize on this emperors character flaw to make a big pro-fit. They approached the emperor and told him that they'd sew him the best possible suits of an extremely expensive special cloth that would be invisible to anybody that was stupid or of low character. The emperor, fearing that he wouldn't manage to see the garments, sent two of his men to go see the matches. The men came ultimately back, and afraid to share with the emperor they couldn't start to see the clothes, told the emperor that the suits were one of the most beautiful suits they'd ever seen. When the emperor went along to see the Farabuttos, understanding that his servants were in a position to see the clothes, he did not wish to acknowledge that he could not see the clothes for fear of being considered foolish and of low character. So h-e proceeded allowing himself to be dressed in non-existent clothes for a march through town and proceeded to walk through town in his underwear. When he discovered a new child that pointed at him and said, But he's no garments, only then did the emperor realized that he'd been swindled. It's amazing to me that many buyers, even those with millions at investment firms, actually think that their specialist or their firm has their best interests at heart. Actually, in my list of 101 Reasons Why Managing Your Own Money is the Only Method to Build Wealth at http://www.smartknowledgeu.com, Ive given readers 101 reasons why this really is very, very seldom the case. Obviously, every one thinks that their counselor or financial expert could be the one guy or girl at their agency that actually cares about their financial security. Get new resources about softship meetness intercomplexity supertension by browsing our provocative web site. They'd 999 times out of 1000, witness a completely different story, If only they can spend just one-day in the trenches with their counselor. Ill exchange still another method I learned about a top financial expert at a top Wall Street firm which should get your attention. This top economic specialist managed several million dollar accounts. Just how he would get wealthy investors to trust him was to show to them his ability to pick stocks that performed extremely well. To do this, he would locate a very thinly traded stock that traditionally have been very volatile. He'd buy a list of high-net worth clients, contact twenty people o-n that list and let them know he was a top financial expert at his firm. Obviously, this could not obtain the attention of these rich people since they did not know him from Adam. Knowing they would be unwilling to begin a relationship with him and hand their income to him, he would acknowledge their reservations. He'd then go to keep these things write the name of this stock that he'd investigated over a bit of paper. He would then tell these 10 individuals that his stock selecting methodology was so great that he was 100 certain that if they invested in this stock, they'd make a healthy pro-fit in a short period of time. Then he would take another 10 people on the number, repeat this scam, but rather, tell these 10 people that he was 100 sure that they'd make a lot of money from this stock if they bought put options on this stock. Until the stock moved 25 or so he then would wait many weeks. When the stock obtained, he'd call the 10 individuals who he told he was one hundred thousand sure they would make lots of money from purchasing the stock. If the stock lost 25 roughly, he'd just forget about the 10 wealthy people he promised would make a lot of money by buying this stock and call the 10 people he told to short the stock. When he called these individuals they were astonished that he was right regarding an investment that they'd never heard of, and many decided to give plenty of cash to him. I tell you this story because techniques like this, made to make it appear as though these investment experts, and I use this term really softly, really know what they're doing, when in-fact, they're attempting to sell nothing more than emperors clothes to you. The truth is if you have been reading my websites for a while now, you understand that the methods of low volatility, asset allocation, and diversification are just emperors clothes as well. Although they may sound great to-you, thats precisely what the very best of revenue strategies accomplish. They are made so well that they cause you to feel comfortable and in control. The most effective emperors clothes promote customers without the customers also knowing they was highly selected objectives. Just research our Down the Rabbit Hole and Educational resources articles at http://www.theundergroundinvestor.com to find why most of the best known investment strategies to-day are nothing more than emperors clothes. My estimate of the per cent of specialists that place emperor clothes each day at hand to people is 999-year. In order that upon presentation to you, they appear to be the finest financial strategies created specifically for you, their finest customers they incorporate schemes, marketing strategies, and income strategies in complex ways. Only in the end, these methods keep you financially bare, so much so, that even children with no level of complexity, would comment upon seeing these buyers that so willingly let them-selves be used for a ride, But he's no money. The truth is, just the other day, I read this article with statements from the CEO of the firm that handles the accounts of a few of the people in The United States by what it takes to seriously build success. Many of his statements, nevertheless emperors clothes arguments that most of the people accept as truth, were so ludicrous that I laughed out loud, knowing that he had been able to place emperors clothes for the top tier of wealthiest clients in America. Don't misunderstand me, it's not that I believe that everybody in the business is out to scam you out of your hard earned cash. There are some really good, honest people available. Nevertheless, due to how firms pay their financial professionals, this much is certain. There will come a time, and probably several times, whenever a expert will have-to make a choice between you and himself/herself. This means that the consultant must choose between doing the absolute most useful thing for you and doing something not as good for you but better for her or his pay. And having experienced the company, I know lots of specialists that chose the latter often times and seldom any at all that chose the latter occasionally. Bear in mind Jim Cramer, some body that created around fortune of 100 million by manipulating rich clients, explained, Whats important when you're in hedge fund style, is never to do anything remotely honest, as the truth is indeed against your view. And once you read Cramers record again, know that this mentality predominates among virtually all investment industry professionals, not just Jim Cramer..