An open public market requires an even playing field. Some participants may have bigger computers, or a millisecond head start on data.
But at least all investors theoretically have access to the same information and analysis.
The idea is that each participant is able to balance risk and reward to suit their own tastes, using the same data.
Unless, that is, some players are allowed to put a thumb on one side of the scales for their own advantage…
On Monday of this week Goldman Sachs issued an interesting reversal of the firm’s normal bearish stance on oil prices. The investment bank released what most are calling a mildly bullish report on the price of crude.
Now, I normally ignore what Goldman is saying, and so should you. The reasons are simple: (1) their estimates are hardly objective; and (2) they usually miss the boat.