SEC Market Regulation

A Wonderful Fluke

One online dictionary defines the word “fluke” as an “unlikely chance occurrence, especially a surprising piece of luck.” Alternative descriptions include chance, coincidence, and accident. All of these synonyms are accurate adjectives for the cryptocurrency market. For the record, I am not cryptocurrency hater. In fact, my stake in Litecoin – a smaller cousin of Bitcoin – …

A Wonderful Fluke Read More »

Is Style Drift Increasing Your Financial Risk?

Do you own mutual funds? If you do, there’s a hidden trap called “style drift” that could be increasing the risk of your investment portfolio. How does style drift happen? Style drift occurs when the fund’s portfolio manager begins to deviate from the fund’s investment objective. For example, a mutual fund that is labeled and categorized as …

Is Style Drift Increasing Your Financial Risk? Read More »

Excessive Bullishness Toward Gold Points to a Retreat

Sentiment extremes, regardless of whether they’re bullish or bearish, invariably point to a readjustment in prices. This undeniable truth applies to all asset classes in all time frames.  Nothing is immune to the forces of crowd behavior. (See Beanie Babies and Pokemon cards) On Jan.23, 2015 the Wall Street Journal declared “Buyers Take a Shine to Metals Again.” When …

Excessive Bullishness Toward Gold Points to a Retreat Read More »

Do Regulators Encourage Market Manipulation?

The latest episode of stock market cheating by high-frequency traders (HFT) has set in, yet unanswered questions remain. Do regulators like the Securities and Exchange Commission (SEC) encourage market manipulation? Manipulation refers to the dishonest activity by individuals or institutions who try to game the price of a stock (NYSEARCA:IVV) or a certain market for their …

Do Regulators Encourage Market Manipulation? Read More »

SEC HQ

43 Questions for Regulators about High-Frequency Trading

Note to the reader: “High-frequency trading” also known as “HFT” is done by firms established for sole purpose of gaining an unfair advantage over other stock market participants. Please keep that in mind as you read on. Why has the Securities and Exchange Commission (SEC) failed to abolish HFT? Wasn’t the 60 Minutes report about …

43 Questions for Regulators about High-Frequency Trading Read More »

4 Bold-Faced Lies about High Frequency Trading

FULL DISCLOSURE: I was once in the camp of high-frequency trading (HFT) supporters. But that changed on May 6, 2010 after the U.S stock market’s “Flash Crash.” After studying the arguments and facts, I’ve now come to realize the existence of HFTs is unlawful and is a direct threat to the fairness and stability of …

4 Bold-Faced Lies about High Frequency Trading Read More »

Rigging the Stock Market is Old Hat

Is the latest revelation of stock market manipulation by high-speed traders via a just released 60 Minutes report really new? Before Michael Lewis’ latest book “Flash Boys,” there was “Wall Street Jungle” – a 1970 bestseller by Richard Ney. Although Ney’s insightful book was written in an era before the dominance of electronic trading, his …

Rigging the Stock Market is Old Hat Read More »

Are Corporate Earnings Being Gamed?

Are corporate earnings really as great as the executives at the helm and Wall Street want us to believe? Over 70% of S&P 500 (^GSPC) companies that have already reported beat analysts’ earnings estimates during the fourth quarter. Furthermore, 66% reported higher sales revenue, which is above four year averages, according to FactSet.  Equity permabulls …

Are Corporate Earnings Being Gamed? Read More »