Looks like Goldman is even feeling the pain -- could they be next?

MNSL answered one year ago …

Almost all the top investment banks worldwide are feeing pain now.

They were so fast in expanding and some of them including sovereign funds tried to bid places like London Stock exchange. Now some of them are struggling. and are freezing funds

They neglected their core businesses and went into some of the bubble areas such as commodity, real estate etc.

I think sooner than later some hedge funds, banks exposure to real estate, commodity instruments will burst before becomes better.

Some are still surviving as they were able to get some capital gains unexpectedly last year and due to successfulness of their bettings against real estate and commodity But now it is going to work against them and their profit will come down by more than 75% in the next financial year.

Therefore, it is better to avoid these types of banks and invest in sectors and companies that going to make excellent results in the fourth quarter, next financial year and in the next five years. These sectors will be biggest winners in the next bull market.

Pl read following links:

http://www.wikinvest.com/stock/Goldman_Sachs_Group_(GS)

Goldman, like its peers, is vulnerable to a number of factors including the overall health of the global economy, interest rates and the strength of the private equity industry. Ironically, the biggest risk to Goldman at this point may be Goldman itself. Goldman derives 68% of its revenues from trading-related activities

Goldman also has $20.4B in financing commitments to its private equity clients. If the firm is unable to sell this debt to institutional investors, a task they may prove difficult in the current environment, earnings could drop substantially.

http://www.financialpost.com/story.html?id=780545

In August, Goldman Sachs forecast oil would hit US$149 by the end of the year.

However according to world energy sources oil is going to drop below $70 until 2015.

http://www.clusterstock.com/2008/5/goldman_oil_bull_a_nutcase_here_s_why_c rash_coming_soon