Friends
Today I want to take a moment to discuss something that occurred yesterday that we believe needs to be addressed. In the morning a research analyst from a major investment bank/brokerage firm put out a report recommending the purchase of Tesla shares. Nothing earth shattering about that as research analysts make recommendations all the time. As is often the case, the recommendation, again coming from a major investment house, carried some weight and the shares of Tesla went up nicely during the trading session. As the session came to a close, Tesla announced that they were selling $2 billion worth of stock to raise capital to fuel expansion (mainly for the production of the Model 3). Oh, and some of the sale was for Mr. Musk personally.
What’s wrong with this picture? Well, guess who was the lead underwriter for the stock offering. Yep, it was the same firm that recommended you buy the shares that morning. So let’s see. You buy the shares this morning and we’ll sell the shares this afternoon. No conflict of interest there. This type of activity is why individuals distrust the markets. It continuously gives the industry a bad reputation.
Why do I bring this up today? Well, we just want to continue to separate ourselves from this nonsense. We strive to avoid conflicts of interest. We might not always be right (quite frankly we get our share of things wrong), but we are independent and always put you, the client’s interest first at all times. Our advice, guidance and wealth management is not muddied with conflicts of interests or ulterior motives. We simply want to do the best we can for you. Every investment choice is made with the intention that it fits your profile and objectives and will make money. As I said, we’re not always right, decisions are made in good faith.
As for today’s markets, stocks spent most of the session in negative territory, as investors continued to ponder the Fed minutes that were released yesterday. By the close, the Dow Jones Industrial Average was down 91 points to finish the day at 17,435. The S&P 500 was down 7 points to close at 2040. Gold was down $19 to trade at $1,255 per ounce, while oil was down $.02 to trade at $48.17 per barrel WTI.
Let’s see how the week finishes out tomorrow.
Have a nice evening everyone.
