There's
an old Wall Street adage meant to inspire investors that goes "it's
not a stock market, but a market of stocks." Consider that dead.
Computer
trading, dark pools and exchange-traded funds are dominating market
action on a daily basis, statistics show, killing the buy and hold
philosophy still attempted by many professional and retail investors
alike. Everything moves up or down together at a speed faster than which
a normal person can react, traders said.
High
frequency trading accounts for 70 percent of market volume on a daily
basis, according to several traders' estimates. The average holding
period for U.S. stocks is now just 2.8 months, according to the
Crosscurrents newsletter. In the 1980s, it was two years.
"The
theory that buy-and-hold was the superior way to ensure gains over the
long term, has been ditched completely in favor of technology," said
Alan Newman, author of the monthly newsletter. "HFT promises gains are
best provided by holding periods measuring as few as microseconds,
possibly a few minutes, or at worst, a few hours."
The
problem is only made worst by the proliferation of exchange-traded
funds, traders said. The vehicles, which make trading a group of stocks
as easy as buying and selling an individual security, passed the $1
trillion in assets mark at the end of last year, according to
BlackRock. This is probably why all ten sectors of the S&P 500
finished in the black for two consecutive years, something that's only
happened one other time since 1960, according to Bespoke Investment
Group.
"The capital raising stock market of the past hundred
years has morphed in just the last 10 years into a casino," said Sal
Arnuk of Themis Trading and a market infrastructure expert who advised
the SEC after last year's so-called Flash Crash. "Who is doing the
fundamental work analyzing stocks? In the end, we've greatly increased
systemic risk."
Another factor jumped
into the fray in December: dark pools. Off-exchange trading accounted
for more than a third of the trading volume in December, says Raymond
James. While these trades are eventually reported to the public
markets, they further damage price discovery, an essential element for a
fair securities market, investors said.
"This was a record high
market share for off-exchange trading and we believe the SEC will
ultimately be forced to react to support the price discovery process by
limiting off-exchange trading for all traces except for large block
trades," wrote Raymond James analyst Patrick O'Shaughnessy in a note to
clients yesterday.
"This destroys
capital markets," said Jon Najarian, co-founder of TradeMonster and a
'Fast Money' trader. "Hidden trading venues, where some participants
get to peek at the orders as they are entered so long as they agree to
'interact' with a minimum percentage, is not an exchange, it's a
license to steal."
While many see these
forces aligning to cause a sort of self-correcting powerful drop in
the market down the road, others feel like it's creating an opportunity
for the stock pickers to mount a comeback.
At the end of last
year, something strange happened. After tracking the S&P 500 for
most of 2010, the Russell 2000 Index, made up of many small companies
with very different characteristics and merits, broke away in the final
three months to double the gains of large cap benchmark for the year.
"Small
cap outperformance in the last quarter is a very good sign this trend
is ending," said Joshua Brown, money manager and author of The Reformed
Broker blog. "Winners and losers are starting to separate themselves
after a year of the whole risk-on (buy anything), risk off (sell
everything) of the last year."
Of course, you could have just bought the iShares Russell 200 Index ETF (NYSEArca:IWM - News) in September.
I
also feel that all these dark pools, ETF flows, and high frequency
trading platforms are wreaking havoc on the market, but they do present
opportunities for stock pickers. This is because if things get really
out of whack, long-term investors (like pension funds) will move in, and
in extreme cases, they may even take a company private.
Nonetheless,
the reality is that investors are struggling to make sense of wild
market gyrations caused by high frequency trading and dark pools. Over
at Zero Hedge, they have been writing on this subject
for a long time, but only now is mainstream media waking up to the fact
that markets are routinely being manipulated by a few large and
powerful players in this space. Some will dismiss this as "part of the
liquidity game", but I think large pension funds should also be asking
some tough questions on how these new "sophisticated" trading methods
impact their holdings.
For me, this is all a license to steal.
Sure, it's legal, but it's still theft using multimillion dollar
computers that are able to trade faster than the speed of light. And
I'm not so sure that the CNBC article got it right. I think Michael Hudson got it right,
the average stock is held for 22 seconds and foreign currency
investment for 30 seconds. As sad as this sounds, this is the reality of
our "new and improved" markets. Computers have taken over, and while
there are limits to these trading platforms, they are increasingly
dominating the way markets react to fundamental news.
Intuit-owned Mint.com is beginning its international expansion today with the launch of its personal finance platform in Canada.
Canadians can access Mint at Mint.com/Canada. The main difference between the Canadian version of Mint.com is that it connects to both Canadian banking financial institutions and U.S. banks and credit unions. Canadian users will still be able to aggregate financial accounts and transaction information, categorize spending, access personal financial data and more. Mint.com’s mobile apps for iPhone and Android will also be available on the iTunes Canada app store and Android Market.
The main barrier to Mint.com’s international expansion is bringing non-U.S. financial institutions onto the platform. But once Intuit does this, I’m fairly certain Mint.com will be able to see a significant growth in the number of users outside the U.S. Currently, Mint.com has 4.5 million users and connects to 16,000 financial institutions.
As Aaron Patzer, vice president and general manager of Intuit Personal Finance and founder of Mint states, “Our Canadian launch is just the beginning of Mint.com’s global expansion.”
robert shumake
Great <b>news</b>: New Obama chief of staff might be … William Daley <b>...</b>
On the one hand, centrist Democrats are being vilified by left-wing bloggers, pundits and partisan news outlets for not being sufficiently liberal, “true” Democrats. On the other, Republicans are pounding them for their association with ...
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Nike Air Max LeBron Soldier V – Upcoming Colorways | SneakerNews.com
Continue reading for a complete look at the upcoming colorways of the Air Max LeBron Soldier V and stick with Sneaker News for more updated information on all Nike LeBron shoes. via CK. Nike Air Max LeBron Soldier V – Upcoming Colorways ...
robert shumake detroit
Great <b>news</b>: New Obama chief of staff might be … William Daley <b>...</b>
On the one hand, centrist Democrats are being vilified by left-wing bloggers, pundits and partisan news outlets for not being sufficiently liberal, “true” Democrats. On the other, Republicans are pounding them for their association with ...
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Nike Air Max LeBron Soldier V – Upcoming Colorways | SneakerNews.com
Continue reading for a complete look at the upcoming colorways of the Air Max LeBron Soldier V and stick with Sneaker News for more updated information on all Nike LeBron shoes. via CK. Nike Air Max LeBron Soldier V – Upcoming Colorways ...
robert shumake
There's
an old Wall Street adage meant to inspire investors that goes "it's
not a stock market, but a market of stocks." Consider that dead.
Computer
trading, dark pools and exchange-traded funds are dominating market
action on a daily basis, statistics show, killing the buy and hold
philosophy still attempted by many professional and retail investors
alike. Everything moves up or down together at a speed faster than which
a normal person can react, traders said.
High
frequency trading accounts for 70 percent of market volume on a daily
basis, according to several traders' estimates. The average holding
period for U.S. stocks is now just 2.8 months, according to the
Crosscurrents newsletter. In the 1980s, it was two years.
"The
theory that buy-and-hold was the superior way to ensure gains over the
long term, has been ditched completely in favor of technology," said
Alan Newman, author of the monthly newsletter. "HFT promises gains are
best provided by holding periods measuring as few as microseconds,
possibly a few minutes, or at worst, a few hours."
The
problem is only made worst by the proliferation of exchange-traded
funds, traders said. The vehicles, which make trading a group of stocks
as easy as buying and selling an individual security, passed the $1
trillion in assets mark at the end of last year, according to
BlackRock. This is probably why all ten sectors of the S&P 500
finished in the black for two consecutive years, something that's only
happened one other time since 1960, according to Bespoke Investment
Group.
"The capital raising stock market of the past hundred
years has morphed in just the last 10 years into a casino," said Sal
Arnuk of Themis Trading and a market infrastructure expert who advised
the SEC after last year's so-called Flash Crash. "Who is doing the
fundamental work analyzing stocks? In the end, we've greatly increased
systemic risk."
Another factor jumped
into the fray in December: dark pools. Off-exchange trading accounted
for more than a third of the trading volume in December, says Raymond
James. While these trades are eventually reported to the public
markets, they further damage price discovery, an essential element for a
fair securities market, investors said.
"This was a record high
market share for off-exchange trading and we believe the SEC will
ultimately be forced to react to support the price discovery process by
limiting off-exchange trading for all traces except for large block
trades," wrote Raymond James analyst Patrick O'Shaughnessy in a note to
clients yesterday.
"This destroys
capital markets," said Jon Najarian, co-founder of TradeMonster and a
'Fast Money' trader. "Hidden trading venues, where some participants
get to peek at the orders as they are entered so long as they agree to
'interact' with a minimum percentage, is not an exchange, it's a
license to steal."
While many see these
forces aligning to cause a sort of self-correcting powerful drop in
the market down the road, others feel like it's creating an opportunity
for the stock pickers to mount a comeback.
At the end of last
year, something strange happened. After tracking the S&P 500 for
most of 2010, the Russell 2000 Index, made up of many small companies
with very different characteristics and merits, broke away in the final
three months to double the gains of large cap benchmark for the year.
"Small
cap outperformance in the last quarter is a very good sign this trend
is ending," said Joshua Brown, money manager and author of The Reformed
Broker blog. "Winners and losers are starting to separate themselves
after a year of the whole risk-on (buy anything), risk off (sell
everything) of the last year."
Of course, you could have just bought the iShares Russell 200 Index ETF (NYSEArca:IWM - News) in September.
I
also feel that all these dark pools, ETF flows, and high frequency
trading platforms are wreaking havoc on the market, but they do present
opportunities for stock pickers. This is because if things get really
out of whack, long-term investors (like pension funds) will move in, and
in extreme cases, they may even take a company private.
Nonetheless,
the reality is that investors are struggling to make sense of wild
market gyrations caused by high frequency trading and dark pools. Over
at Zero Hedge, they have been writing on this subject
for a long time, but only now is mainstream media waking up to the fact
that markets are routinely being manipulated by a few large and
powerful players in this space. Some will dismiss this as "part of the
liquidity game", but I think large pension funds should also be asking
some tough questions on how these new "sophisticated" trading methods
impact their holdings.
For me, this is all a license to steal.
Sure, it's legal, but it's still theft using multimillion dollar
computers that are able to trade faster than the speed of light. And
I'm not so sure that the CNBC article got it right. I think Michael Hudson got it right,
the average stock is held for 22 seconds and foreign currency
investment for 30 seconds. As sad as this sounds, this is the reality of
our "new and improved" markets. Computers have taken over, and while
there are limits to these trading platforms, they are increasingly
dominating the way markets react to fundamental news.
Intuit-owned Mint.com is beginning its international expansion today with the launch of its personal finance platform in Canada.
Canadians can access Mint at Mint.com/Canada. The main difference between the Canadian version of Mint.com is that it connects to both Canadian banking financial institutions and U.S. banks and credit unions. Canadian users will still be able to aggregate financial accounts and transaction information, categorize spending, access personal financial data and more. Mint.com’s mobile apps for iPhone and Android will also be available on the iTunes Canada app store and Android Market.
The main barrier to Mint.com’s international expansion is bringing non-U.S. financial institutions onto the platform. But once Intuit does this, I’m fairly certain Mint.com will be able to see a significant growth in the number of users outside the U.S. Currently, Mint.com has 4.5 million users and connects to 16,000 financial institutions.
As Aaron Patzer, vice president and general manager of Intuit Personal Finance and founder of Mint states, “Our Canadian launch is just the beginning of Mint.com’s global expansion.”
robert shumake
robert shumake
Great <b>news</b>: New Obama chief of staff might be … William Daley <b>...</b>
On the one hand, centrist Democrats are being vilified by left-wing bloggers, pundits and partisan news outlets for not being sufficiently liberal, “true” Democrats. On the other, Republicans are pounding them for their association with ...
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Nike Air Max LeBron Soldier V – Upcoming Colorways | SneakerNews.com
Continue reading for a complete look at the upcoming colorways of the Air Max LeBron Soldier V and stick with Sneaker News for more updated information on all Nike LeBron shoes. via CK. Nike Air Max LeBron Soldier V – Upcoming Colorways ...
robert shumake
Great <b>news</b>: New Obama chief of staff might be … William Daley <b>...</b>
On the one hand, centrist Democrats are being vilified by left-wing bloggers, pundits and partisan news outlets for not being sufficiently liberal, “true” Democrats. On the other, Republicans are pounding them for their association with ...
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Nike Air Max LeBron Soldier V – Upcoming Colorways | SneakerNews.com
Continue reading for a complete look at the upcoming colorways of the Air Max LeBron Soldier V and stick with Sneaker News for more updated information on all Nike LeBron shoes. via CK. Nike Air Max LeBron Soldier V – Upcoming Colorways ...
robert shumake
Are you interested in finding a way to help finance your child's college education? Presented here is one solution and as with any financial advice, it is recommended you do your homework. Some look at this solution as a short-term investment; however, you can make a little go a long way. Numerous parents, grandparents or guardians have successfully applied this solution to offset the high cost of college as well as a supplement to their own bottom line. This is NOT a get rich scheme, and you are not guaranteed to be fabulously wealthy. You can, however secure a solid residual income with little or no cash outlay. Here's how...
Some of the most common ways to finance a child's' college costs include applying for grants, scholarships and loans. While these tried and true methods have become the mainstay in traditional college financing, a little used method is easing it's way into a wide open market. Aside from tuition and books, perhaps the most costly college expenses is the dorm room. Recognizing that most colleges require Freshmen students to live in the dorm during the first year of college, provides you the financier with time to consider becoming a Temporary Landlord.
DISCLAIMER: Prior to initiating or finalizing any financial agreements, you are strongly encouraged to seek out the advice of a lawyer skilled in property management, as well as a Realtor experienced in rental property. There may be some costs associated with such advice, but it is always best to pay now, than to pay later.
Once you've settled on the choice of college for your son or daughter, spend some time on the Internet examining multi-bedroom homes for sale within proximity of college. The "For Sale By Owner" sites often offers some of the lowest prices, but if it's convenience you want, then you should seek the advice of a professional Realtor or property manager.
Next you should visit the area and drive and walk the neighborhood. Remember that if you visit during the summer to consider road conditions and overall maintenance and upkeep during the winter. By actually putting your feet on the ground that you're considering you can establish the rhythm and dynamics of the area. Get a feel for the ebb and flow of the college population, both faculty and students. You'll also be able to learn what the going rate for rent in the area is, as well as what the 'market' will stand.
Once you've completed this research, you may opt to get into a three or four bedroom home. When considering how many rooms to seek simply divide the cost of the monthly house payments by 2 or 3 respectively. In this way you can afford to "rent" 2 or three rooms to other student, typically at a much reduced rate than their dorm costs. You can arrange it so that your student actually earns his room and board by maintaining the house and general upkeep. In this way you are empowering them and allowing them to take some responsibility for their success, without bearing the full brunt of ownership.
Some Keys To Success:
1. Select a house in good repair, but preferably not brand new. This will reduce the cost for the residence and lower your personal qualms about fair wear and tear.
2. The neighborhood should be one that is convenient for college living, with amenities withing walking or biking distance. The proximity of bookstores, cafe's, parks, fast food, and other necessities will increase the appeal to perspective renters. The availability of public transportation is also a plus when available.
3. Before signing anything, discuss the rental agreements, security and other deposits with a lawyer. Having all the documents legally required and expertly reviewed will save much grief and bitter dissension later.
4. Review the terms of agreement with the bank to ensure it is legal to convert a single family dwelling in that neighborhood into a multi-person rental. There may be covenants within the residential community which prohibit such enterprises, but often those can be amended or statements of understanding can be produced by a lawyer to overcome such issues.
5. Carefully screen and select tenants. This may require meeting with the parents of perspective students and having them co-sign the lease/rental agreement. Some parents would prefer to have their student reside off-campus, and not in a fraternity or sorority. This may also involve deciding whether to rent to one gender or making your rental co-ed. Discussions regarding damages, late payments, and breaking the lease should also be conducted.
CAUTION:Liability for actions which occur on the premises of your property may not be fully waived by you the owner. Tenant selection will go a long way toward your peace of mind. All legally binding agreements should be notarized and copies provided to all effected parties.
This introduction to financing your child's tuition by becoming a temporary landlord is not all encompassing. There are several other important areas that should be addressed before you embark on this venture. It is hoped that this short introduction will spark the idea that there are other ways of gaining funds for college beyond hoping for a grant or scholarship.
robert shumake detroit
Great <b>news</b>: New Obama chief of staff might be … William Daley <b>...</b>
On the one hand, centrist Democrats are being vilified by left-wing bloggers, pundits and partisan news outlets for not being sufficiently liberal, “true” Democrats. On the other, Republicans are pounding them for their association with ...
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Nike Air Max LeBron Soldier V – Upcoming Colorways | SneakerNews.com
Continue reading for a complete look at the upcoming colorways of the Air Max LeBron Soldier V and stick with Sneaker News for more updated information on all Nike LeBron shoes. via CK. Nike Air Max LeBron Soldier V – Upcoming Colorways ...
robert shumake detroit
robert shumake
There's
an old Wall Street adage meant to inspire investors that goes "it's
not a stock market, but a market of stocks." Consider that dead.
Computer
trading, dark pools and exchange-traded funds are dominating market
action on a daily basis, statistics show, killing the buy and hold
philosophy still attempted by many professional and retail investors
alike. Everything moves up or down together at a speed faster than which
a normal person can react, traders said.
High
frequency trading accounts for 70 percent of market volume on a daily
basis, according to several traders' estimates. The average holding
period for U.S. stocks is now just 2.8 months, according to the
Crosscurrents newsletter. In the 1980s, it was two years.
"The
theory that buy-and-hold was the superior way to ensure gains over the
long term, has been ditched completely in favor of technology," said
Alan Newman, author of the monthly newsletter. "HFT promises gains are
best provided by holding periods measuring as few as microseconds,
possibly a few minutes, or at worst, a few hours."
The
problem is only made worst by the proliferation of exchange-traded
funds, traders said. The vehicles, which make trading a group of stocks
as easy as buying and selling an individual security, passed the $1
trillion in assets mark at the end of last year, according to
BlackRock. This is probably why all ten sectors of the S&P 500
finished in the black for two consecutive years, something that's only
happened one other time since 1960, according to Bespoke Investment
Group.
"The capital raising stock market of the past hundred
years has morphed in just the last 10 years into a casino," said Sal
Arnuk of Themis Trading and a market infrastructure expert who advised
the SEC after last year's so-called Flash Crash. "Who is doing the
fundamental work analyzing stocks? In the end, we've greatly increased
systemic risk."
Another factor jumped
into the fray in December: dark pools. Off-exchange trading accounted
for more than a third of the trading volume in December, says Raymond
James. While these trades are eventually reported to the public
markets, they further damage price discovery, an essential element for a
fair securities market, investors said.
"This was a record high
market share for off-exchange trading and we believe the SEC will
ultimately be forced to react to support the price discovery process by
limiting off-exchange trading for all traces except for large block
trades," wrote Raymond James analyst Patrick O'Shaughnessy in a note to
clients yesterday.
"This destroys
capital markets," said Jon Najarian, co-founder of TradeMonster and a
'Fast Money' trader. "Hidden trading venues, where some participants
get to peek at the orders as they are entered so long as they agree to
'interact' with a minimum percentage, is not an exchange, it's a
license to steal."
While many see these
forces aligning to cause a sort of self-correcting powerful drop in
the market down the road, others feel like it's creating an opportunity
for the stock pickers to mount a comeback.
At the end of last
year, something strange happened. After tracking the S&P 500 for
most of 2010, the Russell 2000 Index, made up of many small companies
with very different characteristics and merits, broke away in the final
three months to double the gains of large cap benchmark for the year.
"Small
cap outperformance in the last quarter is a very good sign this trend
is ending," said Joshua Brown, money manager and author of The Reformed
Broker blog. "Winners and losers are starting to separate themselves
after a year of the whole risk-on (buy anything), risk off (sell
everything) of the last year."
Of course, you could have just bought the iShares Russell 200 Index ETF (NYSEArca:IWM - News) in September.
I
also feel that all these dark pools, ETF flows, and high frequency
trading platforms are wreaking havoc on the market, but they do present
opportunities for stock pickers. This is because if things get really
out of whack, long-term investors (like pension funds) will move in, and
in extreme cases, they may even take a company private.
Nonetheless,
the reality is that investors are struggling to make sense of wild
market gyrations caused by high frequency trading and dark pools. Over
at Zero Hedge, they have been writing on this subject
for a long time, but only now is mainstream media waking up to the fact
that markets are routinely being manipulated by a few large and
powerful players in this space. Some will dismiss this as "part of the
liquidity game", but I think large pension funds should also be asking
some tough questions on how these new "sophisticated" trading methods
impact their holdings.
For me, this is all a license to steal.
Sure, it's legal, but it's still theft using multimillion dollar
computers that are able to trade faster than the speed of light. And
I'm not so sure that the CNBC article got it right. I think Michael Hudson got it right,
the average stock is held for 22 seconds and foreign currency
investment for 30 seconds. As sad as this sounds, this is the reality of
our "new and improved" markets. Computers have taken over, and while
there are limits to these trading platforms, they are increasingly
dominating the way markets react to fundamental news.
Intuit-owned Mint.com is beginning its international expansion today with the launch of its personal finance platform in Canada.
Canadians can access Mint at Mint.com/Canada. The main difference between the Canadian version of Mint.com is that it connects to both Canadian banking financial institutions and U.S. banks and credit unions. Canadian users will still be able to aggregate financial accounts and transaction information, categorize spending, access personal financial data and more. Mint.com’s mobile apps for iPhone and Android will also be available on the iTunes Canada app store and Android Market.
The main barrier to Mint.com’s international expansion is bringing non-U.S. financial institutions onto the platform. But once Intuit does this, I’m fairly certain Mint.com will be able to see a significant growth in the number of users outside the U.S. Currently, Mint.com has 4.5 million users and connects to 16,000 financial institutions.
As Aaron Patzer, vice president and general manager of Intuit Personal Finance and founder of Mint states, “Our Canadian launch is just the beginning of Mint.com’s global expansion.”
robert shumake
Great <b>news</b>: New Obama chief of staff might be … William Daley <b>...</b>
On the one hand, centrist Democrats are being vilified by left-wing bloggers, pundits and partisan news outlets for not being sufficiently liberal, “true” Democrats. On the other, Republicans are pounding them for their association with ...
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Nike Air Max LeBron Soldier V – Upcoming Colorways | SneakerNews.com
Continue reading for a complete look at the upcoming colorways of the Air Max LeBron Soldier V and stick with Sneaker News for more updated information on all Nike LeBron shoes. via CK. Nike Air Max LeBron Soldier V – Upcoming Colorways ...
robert shumake detroit
robert shumake detroit
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