This morning I had a real interesting conversation. A friend called me and wanted to talk about his portfolio. While we were doing so, he came up with a few new companies he wanted to take a look at. When he mentioned them, I thought yes, those might be good choices for an investment. While talking, he brought up something I have heard before, but didn’t really took too serious. He stated, “there is too much Goldman opinion in the analyst’s view”. I asked, what he means by that and the answer is, while not entirely new, kinda interesting: “If Goldman comes up with an Analyst opinion or recommendation, you must do the opposite or stay away”.
While my friend is not the first one that came up with this statement, I think it now reached a point on where I am concerned of such opinion. Can it really have an influence on certain stocks? In other words, is it good to be involved with Goldman and is it good to get an recommendation from Goldman?
I am pretty sure Goldman doesn’t give a penny on this opinion, but, and I am pretty sure of this, they are losing a lot of money in the process of losing and having no credibility on Main Street. I am not sure for how much longer they can take this, but it cannot go on forever. I am wondering when Goldman, and a few others, start working on their completely damaged reputation.
It might be of importance to consider the Facebook situation. Facebook is a major “Main Street” platform and depending on the perception of the American People. Yes, it is world wide accepted social media platform, but the U.S. market seems to be the most important, I would say. So, with Goldman on the “s… list” of most people in the U.S., and growing, is it a good thing for Facebook to be involved with Goldman?