It wasn’t long ago that volatility seemed to have flat-lined. Those were the good old days. Just look at market results for the past two months and you’ll see a…
High-Frequency Headache
Previous posts this week shared concerns from John Mauldin of Mauldin Economics about exchange-traded products and high-yield bonds. Mauldin also called out high-frequency traders, who did nothing to keep the market from dropping…
Kill the Quants – Before They Kill the Markets
As we noted last week, there is always something to worry about. Yesterday, we discussed the risks being created by exchange-trade products, quoting a Mauldin Economics column. In his column,…
Exchange-Traded Products Can Be Risky
While fear of rising interest rates has clearly been a factor in recent market volatility, there are plenty of other reasons for the sudden jolts that are worrying investors. Doug…
Other Options for Reducing Risk
We noted yesterday that alternative investments can provide the diversification needed for downside protection in case the stock and bond markets turn bearish. Two other suggestions for reducing risk were…
Bully for 2013 … But What About 2014?
2013 markets were full of bull. The economy continued to sputter along, growing at about 2%, unemployment remained high and corporate profits were mediocre. Yet the S&P 500 index rose…
Investors Are Back … So Expect a Correction
Individual investors are moving in. And the smart money is moving out. With the Dow Jones Industrial Average pushing past 14,000, individual investors jumped back into the stock market, it…
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…
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…
Market Going In Wrong Direction
With profits exceeding analyst forecasts and a debt-ceiling agreement reached, there was reason to believe that the market might be ready to reverse direction and head back up last week.…