Marv,
Having been a broker for 20 years------10 at a large wirehouse and ten at a small independent boutique firm, what you are saying is quite true.
Broker-Investment Banks definitely have conflicts of interest. If they want the lucrative banking deals (like the deal GBLX just did) they need to have good relationships with management. It is no coincidence that underwriters recommend the stocks of their clients as soon as permitted by regulations.
I think, however, most individual investors and brokers are aware of these conflicts. (I figured it out after a year or two in the biz and have always been skeptical of research by firms that do banking biz with the firm).
I can say that the boys on CNBC do a fair job of reporting that info. The Street.com also discloses those relationships in their commentary.
As far as a shifting of assets, that is a fact of life. Although I am not an expert TA guy, I use a service provided by a former colleague (He does his own work for his own benefit and does not sell it to the public). He observed the shift about a month ago and advised moving from some weak looking tech charts to some strong looking old economy stocks.
The shift that we all have observed has and continues to take place. I really have no gripe with someone reporting that fact and suggesting that I get into stronger looking stocks and out of weak ones. And I have no problem with someone suggesting that I move back to tech later on.
Depending upon your investment horizon and how well you sleep at night, your strategy may differ. For me, I try to, first, preserve principal and, second, position myself in stocks that are in the midst of bull moves. I can always buy the weak ones back when the bull move begins again. Even if it means paying a few points higher. If you have not read "Reminiscences of a Stock Operator", I would highly recommend that you grab a copy. If you have seen it, then I think you will find that investment style reflected in my approach.
Have been a long term holder of GBLX for many years as I am a long time devoted Gilder subscriber. Although I lightened the position up a bit after the secondary was announced, I am watching the stock for signs that a bull move has again begun.
Fundamentally, I think the company is aggressive and well positioned. Hoping they can execute.
Regards
Bob |
