The text above the list from the founder of this thread nearly a decade ago, besides the rather silly hyperbole of Brinker's ability and needless slam of another more famous market guru contains the following :
"It would be interesting to hear from fellow travelers
of the "Starship Moneytalk", as Brinker has it, and
from subscribers to his newsletter with their thoughts,
opinions, and reminiscences"
Ironically some don't want to hear thoughts about Brinker unless they are cheerleading. Many don't want to hear about the stock; UTEK that he promoted as his only buy in the late 90s and never disclosed while touting it month after month in the newsletter that he had a fee based relationship with UTEK.
Many hate to see the posts of "mistertopes" who was generally accepted by the experienced posters on the Brinker threads to be Bob Brinker himself. Anyone who seriously looks at the posts and the mistakes he and Jr. made can come to no other conclusion, except math would tell you that just because there is not a single logical explanation he can think of that doesn't mean there isn't one. But those posts are very telling about how Brinker views the world, his game, his fellow "experts" and his radio listeners.
Many hate to hear that Brinker claimed he was "not bearish" for months after his January 2000 call and would berate anyone who suggested it was a "sell signal". "I did not issue a sell signal and I am not bearish" Brinker would yell, sputtering into the microphone. Today he will claim to have been bearish and to have issued a sell signal--acting as though he got totally out of equities in Jan 2000 and stayed out until 2003. Nice story--simply untrue.
So that is where the hubris that is Brinker's claim these days comes in to play. Brinker said to leave 40% of stock market investments IN THE MARKET in Jan 2000. For the next 3 months he touted adding up to 5% of an equity portfolio of TEFQX in aggressive investors accounts. TEFQX was trading between 13 and in early 2000 when he had lengthy discourses about it in each of the Jan Feb and Mar newsletters. He kept it as a "buy" until spring of 2001 when it was trading under 4 bucks and called it a "hold" . He should have called it a "HIDE" because it was never mentioned again in his newsletter.
In Oct 2000 Brinker in a one of a kind mailed special bulletin told people to take up to 1/2 of the cash reserves (amounts varied between 20 and 50%) THAT WERE RAISED BY SELLING MONEY IN THE MODEL PORTFOLIOS and buy QQQ shares. At the time the qQQs were trading in the 80s. There was no price, date, exit strategy, explanation of suitability or risk on the bulletin. There was a constant mention of "opportunity" and there was that carrot of "20% or more gains in 2 to 4 months" (sounds like a promotion for a late night infomercical for real estate scams) There was a last line about ACTING IMMEDIATELY-giving a sense of urgerncy. No downside it seems.
Weeks later as the QQQs had fallen Brinker never placed the QQQ shares in the model portfolios even though the money used to buy them obviously came from money raised from selling equity positions in model portfolios. Brinker again bragged on the opportunity for the short term counter trend rally. Indeed month after month Brinker encouraged his subscribers as though he had a clue about handling such a trade. He locked into his original prediction and obviously didn't handle such a dangerous investment for a large portion of a portfolio prudently.
The bulletin said he would give continual updates and send bulletins when necessary on the trade. Only a charlatan would take that to mean that he would simply abandon the trade and try to hide it without ever closing it out or taking responsibility for it in his performance.
Brinker last mentioned the trade in Feb. of 03. In March of 03 when he put the monies he did not leave in the market--about a third or put in the QQQs up to another 1/3 of a portfolio, he placed "new" QQQ shares (Rydex Nasdaq 100) in all three model portfolios. QQQs were trading at 25 bucks then. Since then he has never mentioned the 80$ QQQs in the newsletter, nor has he taken any responsibility for the advice in his performance.
Last weekend a caller asked Brinker about those QQQs he had been holding for 5 years and Brinker dishonestly "answered a different question". "We reduced our position in the QQQ shares in the model portfolios in April of this year"....and then cut the caller off and repeated the claim that he had cut his position in the QQQ shares in April acting like a genius and bragging on the fact they were trading at 42 at the time, giving the impression that was the "only" QQQs he had ever recommended.
So why the QQQs are important is the following.
jan 2000 brinker reduced his portfolios by 60% another 5% in Aug. leaving 35% in the market. He called the 65% "cash reserves"
In Oct 2000 Brinker urged subscribers to use up to 1/2 of the "cash reserves" to buy 80$ QQQs For aggressive investors foolish enough to trust this guy and take this advice thus another 32% was "in the market" , in the worst sector that would eventually fall to 19.00. Thus these people following Brinker's advice exactly had nearly 70% of their money in the market.
Brinker NEVER CLOSED OUT ANY OF THOSE POSTIONS.
So when March 2003 came along, Brinker "pretended" he had never given the advice to buy QQQs even though he did, it is documented and he has never recommened selling the position.
Those taking Brinker's advice and holding the QQQ shares, could not invest that money a second time without selling . Brinker pretended that he was holding all of that money he put in the QQQs in "cash reserve" money market funds. And to this day pretends that the QQQ ACT IMMEDIATELY trade "never happened".
So you see it is not about a bad idea. It was and is about HONESTY. My contention has always been that Brinker plays fast and loose with the facts. When I began to look into the guy, I was surprised at both the wrath I encountered and just how pervasive this "slick talk" and deception was in the Brinker game.
With any guru's advice, "your milage will vary". With Brinker you won't even come close. :) |
