Using Astrology to make Investment Decisions?
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.
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.
What will they think of next?
Note: This site provides NO information on our value investing ETFs or our momentum investing ETFs. Please refer to this site.
Join thousands of other readers and subscribe to our blog.
Please remember that past performance is not an indicator of future results. Please read our full disclosures. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Alpha Architect, its affiliates or its employees. This material has been provided to you solely for information and educational purposes and does not constitute an offer or solicitation of an offer or any advice or recommendation to purchase any securities or other financial instruments and may not be construed as such. The factual information set forth herein has been obtained or derived from sources believed by the author and Alpha Architect to be reliable but it is not necessarily all-inclusive and is not guaranteed as to its accuracy and is not to be regarded as a representation or warranty, express or implied, as to the information’s accuracy or completeness, nor should the attached information serve as the basis of any investment decision. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Alpha Architect.
Definitions of common statistics used in our analysis are available here (towards the bottom)