The Five White Guys Who Run Wall Street

An excellent example of how institutional investors trade.

Posted by KingCAMBO on youTube (around mid August), chart analysis indicating what is really going on with the XLF financial sector ETF, Goldman Sachs, Bear Stearns and Lehman Brothers. He walks you through the above trades - how the big boys sold at the peak to amateur investors and signs of buying when amateur investors like us were panicking with all the subprime news.

So was it a setup ? Well, it would be a good moment to remind ourselves that the stock market is for the most part a zero-sum game. So there will always be smart money selling at a good price to 'less smart money' (for the sake of political correctness) and buying it back when the less-smart money is panicking (and has taken a loss). Which one will you be ?

Goldman Sachs, Lehman Brothers and the like have been around for around 150 years- which means they have weathered many, many more financial crisis more severe than the subprime problems (read the great depression, WWII, dotcom bust and many more) and they will probably be around for another 150 years. The subprime problem, and the resulting explosion of a few quant hedge funds is merely a speck of dust in the overall cosmos these banks operate in.


Damn, I wish I had one of those Bloomberg terminals.