|Goldman Sachs |
positioning a client for a deal.
Goldman Sachs Group Inc. is telling investors to buy European bank stocks for the first time in more than 16 months. Bond buyers are taking the opposite view on concern that policy makers will fail to staunch the debt crisis.As anyone and everyone knows, the time to buy bank stocks was when Warren Buffett pumped $5 billion into Goldman Sachs, at the very height of the 2008 Crisis. Anyone buying Citigroup stock when it fell below $1 a share would have quintupled their money. The same goes for European banks.
But buying American or much less European banking stock now? Especially when Euro-banks are seriously exposed to the sovereign debt of the PIIGS? Foolishly insane.
Nevertheless, Goldman is telling their clients, “Buy! Buy! Buy!”
Which just begs the question: How can any client trust anything that Goldman Sachs recommends?
Shrewd money managers always go against the flow—often to their and their clients’ benefit. But even just a casual look-see through Goldman’s “recommendations” over the years shows that Goldman doesn’t merely go against the flow: They seem to deliberately steer their clients straight to the most unprofitable trade, the most sure-fire money loser.
There’s an old poker saying: If you can’t tell who’s the fool at the table, then he’s you. When dealing with Goldman Sachs, the saying should be: If you cannot immediately recognize how they are trying to rape you, then they have already succeeded.