Using Astrology to make Investment Decisions?

Using Astrology to make Investment Decisions?

May 15, 2014 Uncategorized
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(Last Updated On: September 23, 2014)

I’ve heard some crazy things over the years and I often wondered what percentage of investment managers and advisors have an element of “astrology” to their decision-making process. Nonetheless, I never actually thought someone would use relationships(s) between astronomical phenomena and events in the human world” to make investment decisions.

orion

Turns out that Gurudeo Persaud, formerly an employee of Money Concepts Capital Corporation, did use astrology to make investment decisions and the SEC is busting him for it. Well, actually they are busting him for not disclosing that he was using insane concepts to pick stocks–bravo SEC!

The Commission’s complaint alleged that, while associated with Money Concepts, Persaud started his own company, White Elephant Trading Company LLC. The complaint further alleged that from no later than July 2007 until at least January 2011, Persaud raised more than $1 million from investors by promising them 6 to 18 percent annual returns and a risk-free investment in White Elephant’s private equity fund, which would invest in the futures and other markets. Persaud made numerous misrepresentations and omissions to investors, including guaranteeing their investments were secure, failing to disclose his trading strategies were based on lunar cycles and the gravitational pull between the Earth and the moon, and that he misappropriated nearly half the investors’ contributions for personal use.

source: http://www.sec.gov/litigation/admin/2014/34-72145.pdf

 

What will they think of next?


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About the Author

Wesley R. Gray, Ph.D.

After serving as a Captain in the United States Marine Corps, Dr. Gray received a PhD, and was a finance professor at Drexel University. Dr. Gray’s interest in entrepreneurship and behavioral finance led him to found Alpha Architect. Dr. Gray has published three books: EMBEDDED: A Marine Corps Adviser Inside the Iraqi Army, QUANTITATIVE VALUE: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors, and DIY FINANCIAL ADVISOR: A Simple Solution to Build and Protect Your Wealth. His numerous published works has been highlighted on CBNC, CNN, NPR, Motley Fool, WSJ Market Watch, CFA Institute, Institutional Investor, and CBS News. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.