Goldman's Research Team Has Lost Cred

Quote from libertad:

What is so funny is that they cannot even do it with "legal" inside information....and bonusing out made up prices on illiquid, risky securities where they are the market....
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What is your point?

Do you still not realize what their research team is? It's a bunch of overeducated idiots who write up extensive reports on companies which are selected by the heads of research, who, in turn, take orders from the CEO & his close executive team.

Do you really think the tickers on their list get put there because Goldman's rulers actually think they will make their clients money? Or maybe it is because they have a few money making mechanisms for their sales & trading division, proprietary trading division & market making division which involve the use of their glorified "research" team which caters to institutional, high net worth private client groups and somewhat to the small potatoes retail crowd.

Your criticism of how wrong they are is laughable, because it's not about whether they are wrong. It's whether the intended audience is still listening, and more important, is influenced by these research reports.
 
GS has been getting money from the fed to prop up the markets. I don't see how they can be wrong. My advice is to listen to their calls. They are telling you what they are going to be pumping up in the next 6 months.

You can't fight the money gun.
 
Quote from Pascal:

GS has been getting money from the fed to prop up the markets. I don't see how they can be wrong. My advice is to listen to their calls. They are telling you what they are going to be pumping up in the next 6 months.

You can't fight the money gun.
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Oh, hell no.:D
 
Oh really? So why don't you suggest a suitable benchmark for GS's CONVICTION BUY list? I find the SPX a very suitable benchmark index for such portfolio. A lot of benchmark selecting is utter none sense, brought up by portfolio managers who have an issue with keeping pace with the broad market. A lot of BROAD MARKET funds use benchmarks other than the SPX even though all stocks in such funds are large cap diversified US stocks. Guess why...




Quote from tradestrong:

What was the portfolio beta? What was the portfolio standard deviation? Is comparing this portfolio against the S&P the correct benchmark? Maybe the index it is more comparable against actually fell over 40% in which case this portfolio did beat the "market".

I'm sorry...but whenever I see X portfolio didn't beat the S&P in an argument meant to show how bad the portfolio did, I immediately tune out the source of the argument as not having a clue what they are talking about. The S&P should only be compared to portfolios that are like the S&P.
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Quote from ASusilovic:

As stocks tank and Wall Street is re-made, even the best and brightest in the financial sector are getting their reputations shredded.

Take, for example, Goldman Sachs, whose equity-research department is regarded as the gold standard on Wall Street but whose list of the best stocks to buy couldn't even keep pace with the sharp decline of the S&P 500 index, according to research done for The Post.

Indeed, Goldman's "Conviction Buy" list of 44 stocks - as its best bets list is called - of July 23, 2008, exactly six months ago last Friday, fell 38.75 percent over the half-year while the S&P 500 was off 35.55 percent over the same period.

http://www.nypost.com/seven/01252009/business/goldmans_research_team_has_lost_cred_151978.htm

I have forwarded the article to their research team. Let´s see with what kind of explanation they will come up with...:D
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From the FT


"Eileen Rominger, global chief investment officer, says the change in market conditions is now more favourable to stockpickers. But it is notable that the former head of fundamental equities and CIO of the value and global equity teams was appointed to her newly created position in early April, the week after star quant managers Ray Iwanowski and Mark Carhart announced they were leaving.

GSAM has refused to comment on the reasons for the men’s departure. Their Global Alpha hedge fund lost about 80 per cent of its value between its 2007 $12bn (£7.8bn, €8.7bn) peak and the end of 2008."

If you lose 80% basically you are flat or have a loss overall. These geniuses can put themselves in the camp with the rest of the idiots who believe that they have discovered perpetual motion.
 
In the past -

The only benchmark for calls made public is how much liquidity did the analyst create for the investment bank's clients to sell into - or vice versa in the case of the sell rec.

I remember in the days of level two how you would sell Goldman with a buy call and them be up on the sell side of the level 2 screen in giant size.

you have to be a novice to believe anything goldman says in public.
 
With the likes of 'star' analysts like Abby Joseph Cohen, I never realized Goldman Sachs had any credibility.

Everyone do yourself a favor and conduct this simple and very little time consuming exercise - track the stocks that Goldman upgrades, and downgrades.

You'll see a definite and inverse pattern emerge in short order.
 
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