When it comes to analysing corporate performance, individual investors are surely at a disadvantage. You will find it difficult to know how many cars Tata Motors will make in 2009, how many hotel rooms Indian Hotels will be able to sell in Europe, etc. However the “international” fund manager has access to all this and more information. Moreover, he cannot “analyze” the numbers once he gets them.
However if you define experts a Morgan Stanley, J P Morgan, Citibank, UBS….please think again. They are not experts, they are in the business of selling financial products. Look at the amount of write-offs that they are doing. Look at the amount of down sizing.
Did you see the apologies that UBS and Citibank have been giving. Did you see the amount of credit derivatives that Citi has been forced to take back from clients? It is scary.
Citibank in one of the TV interviews said “we will make money in India for the losses in sub-prime”.
Unless they make 70% commissions in unit linked insurance and fantastic commissions in Mutual funds, I do not know how.
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