The new word is “patient.” And it’s a humdinger. The Dow Jones Industrial Average soared more than 700 points over two days last week after Federal Reserve Board Chair Janet…
The Markets Need Psychotherapy
“The whole idea that the stock market reflects fundamentals is, I think, wrong. It really reflects psychology. The aggregate stock market reflects psychology more than fundamentals.” Robert Shiller, Nobel Prize-winning…
Satan Is a High-Frequency Trader
Satan is now firmly in control of the markets. No, we’re not talking about Ben Bernanke, aka Edward Quince. His time has passed. We’re talking about a high-frequency trader who…
It’s a Mad, Mad, Mad, Mad World
Isn’t summer supposed to be the time when life slows down and the world takes a vacation? That may be the case for some of us, but the despots of…
Bad News – The Economy May be Recovering
“This is what it sounds like when doves cry.” …
The Fed Goes Long
Few investors today would consider investing in long-term Treasury bonds. The yield curve, which measures the spread between interest rates for short-term and long-term bonds, is not as flat as…
Shining a Light on Dark Pools
“Unless there are some changes, there’s going to be a massive crash, a flash crash times ten.” …
Good Market Rigging vs. Bad Market Rigging
“The markets are rigged. … These firms make their money by front-running trades. They’re using their speed advantage to buy shares first and then selling them back at a higher…
Think Like a Rat
Experiments show that if you put rats in a maze and give them a jolt of electricity when they go the wrong way, they will eventually go the right way.…
Fundamentally Flawed
Imagine if the outcome of a football game depended more on the weather than on the talent of the players. Weather, indeed, can have an impact and should, but its…