Bill Cara

Corrupt advice is the reality of the market

September 27, 2022

From Bloomberg today:

In the short term, BlackRock is underweight developed-market equities, and is favoring credit. Investors should “shun most stocks.” BlackRock Investment Institute strategists including Jean BoivinandWei Li wrote “We don’t see a ‘soft landing’. That means more volatility and pressure on risk assets.”

Now that BlackRock has lost over 1.3 trillion dollars of Assets Under Management and the broad market indexes have reached a defined Bear Market status, the BlackRock strategists recommend “shun most stocks.”

Wow. Think about that.

After the market cycle is completed and there is a defined cycle of high, low, and new high levels. let’s revisit this week’s recommendation of BlackRock. I believe the facts will demonstrate how corrupt these people are.

Just for the record, so that you know, I am watching their weekly Mutual Funds performance. In weekly statistics over the past six weeks, BlackRock has 17.3% winning managed Mutual Funds. That happens to be 86 winners out of 498 reported fund results through last Friday. And you know what yesterday will show!

Now they recommend selling. Are we to believe such people?

Let’s go back to December 2021, when the S&P 500 was over 4800, to compare the quotes from BlackRock then versus now that the S&P is 3700.

As I see it, BlackRock would like the public to take realized losses while their staff personally buys into weakness. To prove it, I’d have to have a copy of Larry Fink’s personal holdings to compare his performance to the client’s assets, for which he claims a fiduciary responsibility.

I’d like to see if Fink was selling in January.

And for the record, BlackRock peers are in the same mess, and we should not believe a word they say.

My entire point here is that no fiduciary manager should have the right to be trading as principal against their clients and recommending what their clients do. The conflicts of interest are so appalling that Congress must finally end this systemic fraud. The SEC has to live up to its mandate to serve and protect independent investors and stop protecting corrupt managers.