An Adviser who lost ALL The Money of ALL His Clients |
So far, we have been right.
This year when interest rates actually started rising and more rises are still ahead in US/Canada etc and the so called Quantitative Easing (fake money printing) has stopped almost worldwide (sucking out liquidity from global markets), we have seen hundreds of bankruptcies worldwide causing demand of almost every single product to decline.
Whether it is Apple company or basic garments or furniture or commodities or airlines or telecom or toys or housing or oil or shipping or diversified sellers like Sears, every single sector worldwide is seeing a collapse happen where some of the biggest names in the world have gone bankrupt.
Except in very few pockets globally, real estate is in sustained decline (many parts of US, UK, Australia, Canada, Singapore) and some places it is a catastrophic decline (UAE, India).
Hence, fundamentally, it is impossible for most companies especially the erstwhile large ones to grow and make money if everything is slowing down worldwide.
A supposed to be smart hedge fund manager from Florida (even wrote a book on options and started a hedge fund) blew everything up for ALL his 290 clients and lost them ALL of their investments!
Now the clients need to send thousands or millions of dollars more based on account sizes as margin calls.
He even wrote an article in May 2018 on the exact same thing of natural gas being volatile in winter months and to be careful yet he was foolish enough to invest client money in naked options on natural gas (naked option means without having ownership of the underlying asset) when they made their wildest moves in years (downside volatility as we stated in the opening para above).
But the height of stupidity was making a cry baby video (as if speaking to his clients who are super angry for losing all their money given to him) which is a big NO NO in the world of Wall Street and now his company has removed the video from their website and Youtube but it has already gone viral.
Please do watch this video here and read the entire story.
Wiped-Out Hedge Fund Manager Confessed His Losses on YouTube
Just like we warned everyone in late 2017 and early 2018 to totally stay away from Bitcoin unless they have money to lose.
We know some investors whom we do not advise who went ahead and invested very large sums of money and have lost over 70%-80% of their investments.
It is important to diversify, watch investments very carefully almost on a daily basis and not invest in bonds or mutual funds since they cannot rise despite whatever any fraud and selfish analyst says.
Simple investors (which is a vast majority of investors) will continue to lose their hard earned money which is truly sad.
And investment advisers like above will continue to blow up and make videos and letters to their investors and keep apologizing.
The very basic laws of capitalism and free markets have been turned upside down by the Americans who took interest rates to zero (only for their banks but not for the borrowing by their customers, hence banks had a massive advantage to make billions in profits for taking no risk by being back stopped by the tax payers), did massive bailouts to help their banking buddies and threw away the entire 100 years of capitalism theory into the drain.
This has made the entire world's stock markets into one giant casino that is impossible to predict due to lack of fundamentals, now lack of liquidity and on top so much animosity due to trade wars, sanctions and real wars among so many nations amid declining demand and plunging trade with currencies in massive declines globally.
Be safe and be careful with your advisers.
Not all advisers have your best interest at heart and not many are smart enough to see the major macro changes occurring worldwide since they are all taught by the same masters inside banks or mutual funds whose sole aim is to generate profits for themselves from their customers.
Only if a customer loses money that a banker or an adviser can make money for themselves, because the markets are not making money for nobody for the last few years.
THANKS Mr. Nathani for an eye opening blog. Since I found this site two months ago, I have checked every day for your reports. Keep up the good work, hope others are also taking advantage of your knowledge.
ReplyDeleteDear Andrew,
ReplyDeleteMany thanks for your kind words of appreciation.
Glad that you and others find the information provided useful.
Thank you for visiting and best wishes,
Dear Mr. Nathani,
ReplyDeleteWould fixed deposits or debt funds in India be a safe investment? I have worked for several years in the ME, but there is no more a place for older employees. Agricultural land in India? What else can I explore as a regular income opportunity?
Dear Mr. Farhan,
DeleteThank you for your comment.
Deposits are ok and spread them in 2-3 banks but don't do debt funds as they have lot of fees and many companies go bankrupt so debt funds may not "keep rising" as they comprise of several companies
You are right, there is no jobs for older employees or even for younger expats. From Singapore to Malaysia to UAE to entire Middle East and even in America or UK, they don't want foreigners simply because jobs cannot be created like in the decades gone by so visas are very hard to obtain.
Land is ok to buy in India but remember that it may never be able to be sold so you can buy in an area that you belong to and then lease it to the farmers but even then it is risky so I would avoid but certainly you may explore it and see if any deal makes sense.
You may consider talking to LIC, they have deposit schemes in which they offer 7-8% pa interest and they are the most cash liquid company of India hence are quite safe.
Otherwise, I could also suggest to try to invest in the stock market and buy 8-10 stocks, even if INR 10k each into top most, biggest, blue chip companies like MRF Tyres, Asian Paints , Ashok Leyland, Bajaj Auto etc and the very best which are non political. Buy at least in 2 lots and not at once and wait until the prices drop a lot for some reason which happens 1-2 times a year for even the best of companies.
Avoid banks except HDFC maybe and avoid oil companies. You can try and these companies also pay dividends so can generate cash flow plus good appreciation and you can start with a very small amount to test the waters.
Hope this helps.
All the best,
Manoj extraordinary ability. But your outfit is negative. Think positive, live healthy.
ReplyDeleteDear Kalam Khan,
DeleteThis blog is not meant for you.
The audience for this blog is top 50 level worldwide intellectuals, top 50 global influencers and families with net worth in excess of USD 50m.
If you find it negative, please do us all a favor and click the top button and close this page.
Thank you.
Hi Kalamkhan2020,
ReplyDeleteBeing realistic and finding information which is not easily shared is not negative. It's doing people a favor that care about their money or other people's money that they need to manage (in my case both).
I find your comment beside of being retarded, also demeaning towards the author.
Being positive or negative is some hocus pocus bullshit, want to add value? Give us some insights, strong opinions, facts or something to remember.
Hello,
DeleteThank you very much for your kind support and speaking on our behalf.
We have 4-5 readers who are negative out of thousands who appreciate us. But we have learned to ignore them.
It's a big world and we cannot make everyone happy because we do not share the usual information here nor do we aim to make anyone happy or unhappy. We only share information with our opinions that is hard to find.
If anyone finds it negative, then they need to just look inside themselves and refocus their lives if one article makes them feel negative!
Regret delay in the response due to travels.
Please do keep visiting.
Thank you so much for speaking on our behalf and defending us which is most appreciated.