Making Money When the Market Is Mistaken!

Making Money When the Market is Mistaken!

Part 1.) I did my program review on a one-hour show I watched straight through. It was called, “Making Money when the Market is Mistaken.” The lead man basically running the show was Conrad De Aenlle. He is also a writer for the New York Times and is an expert on making money. The show was basically on Stocks and how J.P. Morgan runs their company.

Now nobody has ever gone broke by thinking others where stupid. There are many managers that work for J.P. Morgan and many of them agree that there is good money to be made underestimating others ability to get the job done right. Now what does that mean? Sounds wrong to me, I was taught to never underestimate others. Now during the entire show they would focus in on this point and try to prove that J.P. Morgan could and would make me money off others mistakes. The funds in most companies are run according to principles of behavioral finance, which means they are run according to behavior repetition. They believe that people are illogical, yet predictable. Followers of this approach do not ignore the nuts and bolts of business - profits, sales, cash flow and so forth. Basically all the functions of the daily business, But they say that investors consistently have errors in evaluating such information, and that professional portfolio managers, wink, wink (J.P. Morgan) can profit from the ways that others make mistakes. Conrad would constantly remind the viewers that he was a part of J.P. Morgan and he was trying to make me money. "Traditional finance theory tells us markets are efficient and rational," said Silvio Tarca, one of the managers of the Morgan funds and one of two people interview live on the show. And basically she says that human behavior leads to irrational decisions and that J.P. Morgan makes a lot of money off of and so should you or me. People when wrapped up in the stock investment life, start to invest based on feelings and emotions instead of logically reasoning. She said J.P. Morgan is practicing sociology instead of just stock investments to become a step ahead of everybody else.

The five Morgan portfolios sold under their own brand all produced better than the Standard & Poor 500-stock index over the 12 months through March. Which would mean their theory is working. The flagship Intrepid America a stock of J.P. Morgan, for example, gained 11 percent in the 12 months. Compared with a 6.7 percent gain for the Standard & Poor 500-stock index. Which I don’t consider a bad investment its just J.P. Morgan is a little better. Contraire, America and two other intrepid funds, Value and Growth, were introduced two years ago. The fifth in the series, Intrepid European, is nearly five years old. Through their life spans, all have out produced the S.& P. 500. So you can see that the system is working for J.P. Morgan. Two other funds, Undiscovered Managers Behavioral Value and Undiscovered Managers Behavioral Growth, have had a mixed record over their six-year lives. Morgan acquired them in 2003 from a small investment firm run by Russell J. Fuller, who continues to look after the portfolio. J.P. Morgan is just running his stocks through their investment system. It seems to be coming out on the brighter side. Now who would have thought that sociology and peoples emotions would have come into play when messing with hundreds of thousands of dollars? Obviously J.P. Morgan is capitalizing off this and they say that many others and me should too.

Part 2 The main individual involved in this program was Conrad De Aenlle, and like I said earlier he is also a writer