Monday, December 07, 2009

Don't let ‘Climategate' melt down your portfolio

So how can you ensure you're not harmed in future by slick rhetoric? First, by forcing yourself to admit, when the first signs of fraud appear, that you have been duped. Don't let your pride stand in the way. Get out. This way, you avoid staying on to the grim end with future Nortels.

Second, whenever you see a talking head pushing a stock or a fashionable disaster on TV, ask yourself: “Who pays him?” Everyone in the market is talking up his book, yet once a mania starts, everyone has the same book, and so they all push the same thing higher until it all unravels.

1 comment:

Anonymous said...

It might be unravelling now. Goldman Sachs is responsible for the climate change scam (surprise) and stands to make a fortune on it - on top of what it has already made.

Better still, with each passing year, as carbon allowances are squeezed, they make more. Guaranteed.