Goldman’s mistakes of bullish call on U.S. financial and consumer stocks and subsequent reversal take toll on its clients
Fred Day
Jun. 23, 2008

In May, the world's biggest securities firm boosted its rating on financial companies to ``neutral,'''' or market-weight, and assigned an ``overweight'''' recommendation to consumer shares. Today Goldman finally recognized their biggest one more blunder after the subprime insanity of the firm. They have finally reversed their bullish call.

``We boosted our consumer discretionary and financials weights in May on the belief the sectors would benefit from bank recapitalization and fiscal stimulus,'''' New York-based Goldman analyst David J. Kostin wrote in a note to clients today. ``Our thesis was clearly wrong in hindsight.''''

But Goldman investors are upset. The firm has provided wrong guidance one after the other. It cost money and state of mind of the investors.

Goldman’s mistakes of bullish call on U.S. financial and consumer stocks and subsequent reversal take toll on its clients
Fred Day
In May, the world's biggest securities firm boosted its rating on financial companies to 'neutral,' or market-weight, and assigned an 'overweight'
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Indian rupee shows no signs of reversing its slide as Asia's worst performing currency as hyperinflation and inaction of central bank plagues Indian economy
Babu Ghanta
Reserve Bank of India raised its interest rate after 15 months. The central bank’s action is as ineffective as the finance ministry that never understood the intricacies of Indian economy in the first place.
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Joe Weinman
As they lend the money, the poorer nations will actually increase the oil consumption and that will in turn raise the price of oil. There are little signs from India and China that there will be lower oil demand in those hyper-inflated economies.
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How the oil man Bush raised the oil price and now holds the country hostage to environmental pollution by drilling offshore
Tania Solars
At the same time guess what India and China didi with the free flowing outsourcing money from United States? They subsidized petroleum products for their own citizen. That in turn increased world demand for oil by 40%.
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After Bear is it Goldman?
Fred Day
The subprime and credit exposure for Goldman is also a headache. The firm is successful in creating the so called hype that it is stronger and healthier than it looks. But was not that what Bear Sterns was doing before it collapsed?
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Borrowers gain options for lower interest mortgage rates and principal reductions - lenders have 45 days to respond
Tania Harding
The large lenders such as Countrywide and Wells Fargo have agreed lenders will have 45 days to decide whether they are willing to renegotiate the loan of a struggling borrower.
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Metals and Asian stocks rise but oil falls in Asia – what’s the real trend?
Sam Adelton
The market reversals and volatility are prominent aided by the index, private equity, ETF and hedge funds. Investors trapped on the wrong side of trades are getting wiped out overnight.
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