From Michael Kahn’s blog, Behind the Headlines:
Here’s a marketing trick from a bucket shop. Send out 10,000 mailings – 5000 say buy stock X and 5000 say sell stock X. Let’s say X goes up.
Now take the list of 5000 mailings that said to buy and send 2500 with a buy on stock Y and 2500 with a sell on stock Y. Let’s say stock Y goes up, too.
Now take the 2500 winner names and send 1250 buys on stock Z and 1250 sells on stock Z. Let’s say Z goes down.
You now have a list of 1250 people who think you are a genius with 3 picks in a row. Rake in the subscription money and let reality begin. Who cares? You just sold 1250 subscriptions to people who won’t renew. Say $250 for an annual subscription times 1250 people and you made $300 grand. What if you started with a list of 100,000 names. Now you are making some serious coin.
This is the land of crushed hope and dreams that Wall Street has become. Honest purveyors of financial advice are swamped by the crooks. A good bear market thrashing is necessary to “drain the swamp” as Nancy Pelosi likes to say.