Making Money When the Market is Mistaken! Part 1. ) I did my program review on a one-hour show I watched straight through. It was called, “Making Money when the Market is Mistaken.” The lead man basically running the show was Conrad De Aenlle. He is also a writer for the New York Times and is an expert on making money.
The show was basically on Stocks and how J. P. Morgan runs their company. Now nobody has ever gone broke by thinking others where stupid.
There are many managers that work for J. P. Morgan and many of them agree that there is good money to be made underestimating others ability to get the job done right. Now what does that mean? Sounds wrong to me, I was taught to never underestimate others.
Now during the entire show they would focus in on this point and try to prove that J. P. Morgan could and would make me money off others mistakes. The funds in most companies are run according to principles of behavioral finance, which means they are run according to behavior repetition. They believe that people are illogical, yet predictable.
Followers of this approach do not ignore the nuts and bolts of business – profits, sales, cash flow and so forth. Basically all the functions of the daily business, But they say that investors consistently have errors in evaluating such information, and that professional portfolio managers, wink, wink (J. P. Morgan) can profit from the ways that others make mistakes.
Conrad would constantly remind the viewers that he was a part of J. P. Morgan and he was trying to make me money. ‘Traditional finance theory tells us markets are efficient and rational,’ said Silvio T arca, one of the managers of the Morgan funds and one of two people interview live on the show. And basically she says that human behavior leads to irrational decisions and that J. P.
Morgan makes a lot of money off of and so should you or me. People when wrapped up in the stock investment life, start to invest based on feelings and emotions instead of logically reasoning. She said J. P.
Morgan is practicing sociology instead of just stock investments to become a step ahead of everybody else. The five Morgan portfolios sold under their own brand all produced better than the Standard & Poor 500-stock index over the 12 months through March. Which would mean their theory is working. The flagship Intrepid America a stock of J. P. Morgan, for example, gained 11 percent in the 12 months.
Compared with a 6. 7 percent gain for the Standard & Poor 500-stock index. Which I don’t consider a bad investment its just J. P. Morgan is a little better. Contraire, America and two other intrepid funds, Value and Growth, were introduced two years ago.
The fifth in the series, Intrepid European, is nearly five years old. Through their life spans, all have out produced the S. & P. 500. So you can see that the system is working for J. P.
Morgan. Two other funds, Undiscovered Managers Behavioral Value and Undiscovered Managers Behavioral Growth, have had a mixed record over their six-year lives. Morgan acquired them in 2003 from a small investment firm run by Russell J. Fuller, who continues to look after the portfolio. J. P.
Morgan is just running his stocks through their investment system. It seems to be coming out on the brighter side. Now who would have thought that sociology and peoples emotions would have come into play when messing with hundreds of thousands of dollars? Obviously J. P.
Morgan is capitalizing off this and they say that many others and me should too. Part 2 The main individual involved in this program was Conrad De Aenlle, and like I said earlier he is also a writer for the New York Times. When doing the show he referred a lot to his writing days, for instance when he compared J. P.
Morgan with the standard and poor 500 stocks he would pull up past reports he did on them for his news column. I thought he did an excellent job running the program he was like Stuart Scott on ESPN the way he analyzed and lead you into each segment of the program. On thing I didn’t like about him was the way he questioned his guest. His guest was another stockbroker named Jason Collins, Conrad seemed to put Jason on the spot with every question. Now I am not sure if Jason wasn’t prepared or if Conrad was just being to assertive, but this segment of the show didn’t run smoothly what so ever. Jason had a hard time answering questions off the top of his head, which I don’t blame him for I didn’t understand how Conrad could take as many phone calls as he did and know every single stock the customers where asking about.
But Jason did ok when asked about his own individual stocks and how they where doing compared to how they where doing after he put them in the hands of J. P. Morgan. Silvio T arco was another guest on the show and she is a manager for J.
P. Morgan stocks and was also interviewed live on the show. I though this segment of the show was excellent the two where cooperating much better than Jason and Conrad. I also though when Conrad was asking almost the same questions to Silvio he was much more lenient and understanding, now maybe that is because Silvio was a girl or because they both work for the same company and they knew what each other where talking about. That’s it for individuals on the show, now Conrad did at one time in the hour for about ten minutes of the show open the phone lines up for calls from J.
P. Morgan investors to answerer any questions they would have on the fly. Part 3 After watching this hour-long program of how J. P. Morgan is going to make me some extra money in my pocket, by keeping emotions out of play. I would have to agree with the position presented.
I mean how could you go against the cold hard evidence they presented on the show. Every single J. P. Morgan stock that was used in this formula was successful and not only was it just successful it exceeded all other stock companies by almost 8%. Now that’s unreal for a stock broking company to be that far ahead of all the competition. Now that’s only for the small percentage of stocks that are.