Goldman Sachs Group Inc. racked up trading profits for itself every day last quarter. Clients who followed the firm’s investment advice fared far worse.
Seven of the investment bank’s nine “recommended top trades for 2010” have been money losers for investors who adopted the New York-based firm’s advice, according to data compiled by Bloomberg from a Goldman Sachs research note sent yesterday. Clients who used the tips lost 14 per cent buying the Polish zloty versus the Japanese yen, 9.4 per cent buying Chinese stocks in Hong Kong and 9.8 per cent trading the British pound against the New Zealand dollar.
The comparison between Goldman’s own trading profits (which have been perfect) and its client advice is amusing, but… it’s a little unfair.
Goldman isn’t taking directional bets on Chinese stocks on the zloty. And it can’t tell its clients to become a bank, borrow from the Fed and lend long.