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A big story that made the rounds in the financial media last month was Jim Cramers (of the Street.com) statement that some hedge fund managers spread false rumors about a business to large trading desks and the media to drive-a stock price lower. Clicky includes more about where to allow for it. He explained this practice is illegal, but simple to do 'since the SEC [Securities Exchange Commission, the U.S. regulatory body] doesn't understand it.' More over, because the truth is so against your view, the extremely rich former hedge fund manager boasted, Whats important when you are in hedge fund function, says Cramer, is to not do such a thing remotely truthful. For those of you that remain skeptical concerning the fraudulent techniques of businesses and investment professionals, maybe an associates admission may finally tell you. Why these reports even make big headlines is beyond me. As Ive been saying for years that the investment industry is filled with investment experts, everybody else from economic consultants to private wealth managers to professional money managers, hard at work weaving the emperors new clothes, a former industry insider myself. However, only if a huge mouth like Cramer speaks of the dishonesty that netted him great wealth does it attract attention. For those of you not familiar with the fantasy The Emperors New Clothes I want to summarize it for you. Way back when in a kingdom, there lived an emperor whose vanity was renowned. Learn further on this affiliated article - Click here The Seo Benefits Of Link Developing · Storify. Two swindlers, Guido and Luigi Farabutto, knew that they could capitalize on this emperors character defect to make a huge profit. They acknowledged the emperor and told him that they would sew him the best possible suits of a really high priced special fabric that would be invisible to anyone that was ridiculous or of low character. The emperor, fearing he would not manage to see the clothes, 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 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 was in a position to see the clothes, he didn't want to acknowledge that he couldn't see the clothes for fear of being considered foolish and of low character. Therefore h-e proceeded to permit herself to be dressed in non-existent clothes for a parade through town and proceeded to walk through town in his underwear. When he came upon a new child that pointed at him and said, But he's no garments, only then did the emperor understood that he had been conned. It's remarkable if you ask me that many people, even those with thousands at investment organizations, really think that their counselor or their firm has their best interests at heart. In fact, within my set of 101 Reasons Why Managing Your Own Money is the Only Way to Build Wealth at http://www.smartknowledgeu.com, Ive given readers 101 reasons why this is very, very seldom the case. Needless to say, everyone else thinks that their counselor or financial consultant is the one guy or gal at their firm that actually cares about their financial security. They'd 999 times out of 1000, experience an entirely different story, If only they could spend just one-day in the trenches using their consultant. Sick relay another technique I heard about a top financial expert at a top Wall Street firm that should get your attention. This top financial expert managed many million dollar accounts. The way in which he would get wealthy investors to trust him was to show for them his ability to select stocks that performed phenomenally well. To accomplish this, he would look for a very thinly traded stock that historically were very unstable. He would pay-for a list of high net worth customers, phone five people on that list and tell them he was a premier financial expert at his agency. Naturally, this could not have the attention of these wealthy people because they did not know him from Adam. Knowing they'd be reluctant to hand their income to him and start a relationship with him, he'd recognize their concerns. He'd then check out ask them to write the name of this stock that he had explored on the piece of paper. He would then tell these 1-0 people that his stock selecting technique was so good that he was 100 certain that if they committed to this stock, they would produce a healthy profit in a short span of time. Then he would simply take the next 10 people on the number, repeat this con, but instead, inform these 10 people that he was 100 certain that they would make lots of money from this stock if they purchased put options on this stock. He then would wait several weeks before stock moved 2500-3000 or so. This influential save on web site has oodles of telling lessons for where to deal with this activity. He'd call the 10 individuals who he told he was a large number of sure they'd make lots of money from purchasing the stock, In the event the stock gained. He would ignore the 10 wealthy people he stated would make a lot of money by purchasing this stock and call the 10 people he told to short the stock, if the stock lost 25 or so. They were astonished that he was right regarding a stock that they'd never heard about when he called these individuals, and many decided to provide lots of money to him. I tell you this story because techniques like this, designed to make it appear as if these investment experts, and I use this expression really lightly, really understand what they're doing, when in reality, they are trying to sell only emperors clothes to you. Actually if you have been reading my sites for a while now, you know that the methods of diversification, asset allocation, and low volatility are just emperors clothes too. Though they might sound good to-you, thats precisely what the top of sales strategies complete. They are made so well that they cause you to feel comfortable and in-charge. The very best emperors clothes offer customers without the customers also recognizing that they was highly selected objectives. Visit account to discover the purpose of it. Only research our Down the Rabbit Hole and Educational sources articles at http://www.theundergroundinvestor.com to find out why most of the best-known investment strategies to-day are only emperors clothes. My estimate of the percent of specialists that weave emperor clothes each day at hand to investors is 99-100. In order that upon presentation to you, they seem like the finest economic strategies created specifically for you, their finest customers they incorporate plans, marketing strategies, and sales strategies in complex ways. Only ultimately, these methods leave you financially bare, so much so, that even kiddies with no economic level of complexity, would comment upon seeing these buyers that so willingly let them-selves be studied for a journey, But he has no wealth. In-fact, just last week, I read this article with statements from the CEO of a organization that handles the records of a few of the people in The Usa by what it takes to truly create wealth. Lots of his claims, however emperors clothes reasons that most people accept as truth, were so foolish that I laughed aloud, knowing that he had been able to weave emperors clothes for the top tier of wealthiest customers in The Usa. Do not misunderstand me, it's not that in my opinion that everybody in the business is out to scam you out of your wages. There are a few truly good, honest people in the business. Nevertheless, on account of how companies pay their economic consultants, that much is expected. There will come a time, and most-likely many times, when a specialist will need to make a decision between you and himself/herself. Which means that the consultant must choose between doing absolutely the most useful thing for you and doing some thing not as good for you but better for his / her pay. And having been in the business, I know lots of instructors that chose the latter often times and seldom any at all that chose the latter sometimes. Remember Jim Cramer, some-one that developed approximately fortune of 100 million by manipulating rich clients, explained, Whats important if you are in hedge fund method, is never to do any such thing remotely honest, as the fact is indeed against your view. And when you read Cramers statement again, understand that this attitude predominates among almost all investment industry professionals, not only Jim Cramer..