Winning By Deception

“Never attempt to win by force what can be won by deception.”  ~ Niccolò Machiavelli, The Prince

How to make money in this market? It’s easier if you start with some…

Wolf Richter of testosteronepit was told by a wealth manager that his elderly clients are tired of their low interest CDs and Treasuries. Instead, the clients want to make 25% a year with stocks–as their kids told them they could. 

They want “some stuff like that.” Of course, their risk tolerance is essentially zero. This is probably not a good sign. 

“They wanted a risk-free 25% return, something that’s readily available nowadays in the stock market, no problem. The S&P is scheduled to hit that point over the next few days. With two month left to go in the year, its gains will certainly exceed 30%. Stocks are no longer at risk of even a mild downdraft. Certainly not of a serious correction. Those belong to the past. They’ve been going up relentlessly, independent of corporate fundamentals or economic data, both of which have been dreary recently.”

Keep reading Wolf Richter of testosteronepit

The Justice Department and Steve Cohen of SAC Capital have come to an agreement after the fund had been charged with insider trading. 

At Business Insider, Julia La Roche and Linette Lopez write about The Rise And Fall Of Steve Cohen:

The fund had been charged with insider trading, and in order to settle those charges, it admitted guilt, agreed to pay a $1.8 billion fine, and return all money belonging to outside investors.

In short, the storied hedge fund would shut down, leaving CEO Steve Cohen — known for being one of the most successful traders on Wall Street — with a $9 billion family office… and an ongoing SEC investigation into his own trading.

Cohen began his Stamford-headquartered hedge fund in 1992 with only $25 million, and came into prominence for his grand slam returns. In its better days, SAC had $14 billion assets under management and employees around 900 people globally. 

Then things turned very sour, as accusations of insider trading started to plague the firm and its subsidiary hedge funds.

Continue: The Rise And Fall Of Steve Cohen