Backstage Wall Street: An Insider's Guide to Knowing Who to Trust, Who to Run From, and How to Maximize Your Investments
Format: PDF / Kindle (mobi) / ePub
Chances are you haven’t been making the best investing decisions.
BECAUSE THAT’S HOW WALL STREET WANTS IT
“[T]he always irreverent author of the Reformed Broker blog has written an excellent narrative that shares all of your broker’s dirty little secrets. Much like Michael Lewis’ Liar’s Poker captured the essence of 1980s institutional Wall Street, Brown’s Backstage Wall Street recreates the boiler room retail brokerage culture of the 1990s and early 2000s in vivid color.”
“With a smirk, a lashing wit, and an appropriate irreverence, Joshua Brown gives voice to what all investment professionals are―or should be―secretly thinking.”
―MICHAEL SANTOLI, Barron’s columnist
“The pages of this book are filled with colorful exposés of misconduct in the way Wall Street presents and sells itself (and its financial products offerings!). . . . Run don’t walk to read Brown’s chronicles of deception [perpetrated by] those wonderful folks on Wall Street, who nearly bankrupted the world’s fi nancial system a few short years ago.”
―DOUGLAS A. KASS, Seabreeze Partners Management, Inc.
“Everything you’ve ever read about Wall Street is a total lie. Everyone is lying to you every day. Until you read this book.”
―JAMES ALTUCHER, Formula Capital and author of I Was Blind but Now I See
“Joshua wants Wall Street to be awesome. You can feel it every day on his amazing blog and in this great book. He is happy to shout when Wall Street drives him crazy. I guarantee you will enjoy this book that describes the action behind the business of Wall Street and his own experiences along the way.”
―HOWARD LINDZON, Lindzon Capital and founder of StockTwits
"Joshua Brown may be the funniest writer on finance today, but Backstage Wall Street could make you cry more than laugh. The buffoons, manipulators, and incompetents Brown parades before us are the stewards of our retirement accounts....What's important is that investors understand the choices before them. Backstage Wall Street goes a long way to taking us backstage, while making us laugh in the process."
About the Book:
Wall Street is very good at one thing: convincing you to act against your own interests. And there’s no one out there better equipped with the knowledge and moxie to explain how it all works than Josh Brown. A man The New York Times referred to as “the Merchant of Snark” and Barron’s called “pot-stirring and provocative,” Brown worked for 10 years in the industry, a time during which he learned some hard truths about how clients are routinely treated―and how their money is sent on a one-way trip to Wall Street’s coffers.
Backstage Wall Street reveals the inner workings of the world’s biggest money machine and explains how a relatively small confederation of brilliant, sometimes ill-intentioned people fuel it, operate it, and repair it when necessary―none of which is for the good of the average investor.
Offering a look that only a long-term insider could provide (and that only a “reformed” insider would want to provide), Brown describes:
THE PEOPLE―Why retail brokers always profit―even if you don’t
THE PRODUCTS―How funds, ETFs, and other products are invented as failsafe profit generators―for the inventors alone
THE PITCH―The marketing schemes designed for one thing and one thing only: to separate you from your money
It’s that bad . . . but there’s a light at the end of the tunnel. Brown gives you the knowledge you need to make the right decisions at the right time.
Backstage Wall Street is about seeing reality for what it is and adjusting your actions accordingly. It’s about learning who and what to steer clear of at all times. And it’s about setting the stage for a bright financial future―your own way.
month.” He deﬁnitely will, we all nod. “And you know why? You know what the difference is between me and everyone else? I want it. I need it. I’m hungrier than everyone here, which is a f*cking embarrassment considering I already make more than every single person in this boardroom.” It’s not true, but the big producers who would normally object don’t have to sit through harangues like this; they are in their ofﬁces while their apprentice brokers (like me) are being lectured by Big Shot. “Jimmy,”
that should make you very afraid . . . except for the fact that I don’t use it anymore. I can close anyone. And I do mean anyone. Given the names and phone numbers of three qualiﬁed (wealthy) investors, I could turn one of them into a stock-purchasing client within one phone call, guaranteed. When I explain this to civilians who have never worked in (or near) the brokerage business, they are in disbelief that such a thing could even be possible. They have no idea. Having been schooled intensively
Upstarts like DLJ Direct, Datek, E*TRADE, and Ameritrade were not necessarily taking business from traditional discount brokers at the outset; they were merely helping the vertical itself ﬁnd a higher level of respectability among the investor class. No longer were “relationships” a deciding factor in terms of who would be successful and who would be merely a misguided investor left by the wayside. All of a sudden it was hip to be making one’s own decisions about which stocks to buy. By the
UltraShort Financials ETF is ‘for crackheads only.’ You can’t call our SKF fund a crackhead, Josh.” ∗ His name might have been Kevin or Keith or something like that; I don’t remember. But this phone call actually did take place in the summer of 2009. 121 122 BACKSTAGE WALL STREET “I hear ya, but SKF is a crackhead fund. It was built for crackheads and is traded primarily by crackheads. Dude, you built a leveraged fund that gives people two times the exposure of the bank stocks’ downside,
suitable for people who want a volatile trade with double the intraday move of the index itself, right?” “Well, yes, Josh, they do work more efficiently for intraday trades and shorter holding periods, that’s correct.” “Great, so we agree. Your leveraged ETFs are for crackheads. The record-breaking volatility we’re already coping with right now just isn’t enough for them, they need SKF and QID and such for an even higher high . . . like crackheads. So I’m gonna write whatever I want, Keith.