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…
High-Speed Casinos
A tweet – 12 words, 140 characters – caused a selling frenzy last week, as the stock market dumped $134 billion in stocks in a minute and a half and…
Where’s the Equity in HFT?
In spite of all of the talk about equity, fairness and helping the middle class that’s been circulating in Washington, the stock market is now rigged to help the rich…
Set Our Markets Free!
In the not-too-distant past, the stock market rewarded entrepreneurs who worked hard and had innovative ideas. Today, the market is driven primarily by two things: Monetary policy. The Federal Reserve…
The Truth about High-Frequency Trading
We’ve been critical before about high-frequency trading. While regulation sometimes makes matters worse, it’s encouraging that he U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing this…
The High Price of High-Frequency Trading
Whatever its perceived benefits, HFT is changing the way the stock market operates. It used to be that companies went public to raise capital; investors took risks by buying company stock,…
High-Frequency Trading Accounts For Three Out of Four Trades
With graphs of stock market prices looking like the Alps recently, people are hearing a great deal about high-frequency trading (HFT) and its impact on the market. Except for hearing…
The Myth of Market Efficiency
“Belief in myths allows the comfort of opinion without the discomfort of thought.” – John F. Kennedy The current stock market is exposing the myth of market efficiency. The myth says…