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High-frequency trading revisited

Stock trading has evolved considerably since the original Buttonwood Agreement was first signed back in 1792 and 24 stockbrokers met outdoors on Wall Street under a buttonwood tree. The advent of the Internet and electronic trading has really advanced trading execution and the flow of information. Back in September, I wrote an article about high frequency trading, referred to as “HFT.” Since the publication of Michael Lewis’s book, “Flash Boys,” …Read More

Will the bond market’s recent rally last?

The bond market’s recent rally (higher prices, lower yields) has two causes, both of which may prove to be fleeting: 1. The Fed’s minutes clearly indicate that the majority of the FOMC members favor lower interest rates for a longer period of time than what the market had interpreted from “Yellen’s 6-month comment” at the press conference after the meeting. 2. The recent spate of economic indicators for March, while …Read More

Market Beat: An update on gaming

The Nevada Gaming Control Board recently released revenue numbers for the month of February. Gaming revenue in the state dropped by 13.7 percent in February compared to 2013. Statewide, casinos took in $926 million. Revenue from the Las Vegas strip was $555.7 million, which was a 20.2 percent drop from February 2013. The take for Washoe County casinos dropped slightly, by 1.41 percent to $58.7 million. Casinos at North Lake …Read More

The European Central Bank would be wise to avoid QE

The ECB’s go-slow approach to the establishment of a QE program is both rational and laudable. Read: ECB will prime quantitative easing, but far from pulling trigger yet The QE experiments in the U.S. and Japan are far from over.  While “low” inflation is cited as a reason to keep the money creation experiment alive, the definition of inflation that is used is highly questionable.  If the definition of “inflation” …Read More

Do you know the real fees on your investment account?

The financial and investment industry carries with it a well-deserved aura of corruption and greed. The SEC constantly investigates questionable Wall Street practices. While a major contributor to the financial crisis and the recession and its aftermath, it seems the New York financial industry never missed a beat in collecting outsized bonuses, to say nothing of outlandish eight-figure salaries. Much of the money made in the investment segment of the …Read More

Should bond investors be worried? This technician says yes; I say no.

I would disagree with the technical analyst in this video, the market believes that the ECB is about to ease interest rates (tensions in the Ukraine), as well as the Chinese government adding stimulus to its economy.  If one or both of these occur the Dollar becomes a safety haven driving Treasury yields down and prices up.  Keep in mind that the charts the technician sites in the video can’t …Read More