Dumb Money

"Alexa... Should I Buy Stocks?"

Are retail investors buttressing US stocks at current (and elevated) levels? A variety of indicators say "Yes". Our primary concern: fund flows can be quite seasonal, with Q1-to-early Q2 a peak period due to retirement account flows. After mid-April, this diminishes considerably. Then, we will need a reliable stream of positive headlines to keep retail investors in the game.

It's Time To Get Painfully Honest: Banks Are Evil

"I've increasingly come to see the financial industry - with the big banks at its core - as the root cause of injustice in today's society." Whether it's social equity, the security of your job or retirement, your day-to-day existence, or the fairness of the laws we live under - our fate is currently in the hands of the banks.

The Second Dumbest Kind Of Money Is Pouring Into Stocks - "With A Vengeance"

One of the traditional signs of market tops is individual investors finally succumbing to the lure of apparently easy money and pouring their savings into the stock market. In the past this dumb money flowed into equity mutual funds in general. But today it’s favoring exchange traded funds (ETFs)...

US Financial Markets - Alarm Bells Are Ringing

If any unexpected fundamental news should emerge that throw doubt on the beliefs so widely held by market participants of late, a sizable surge in market volatility is likely to ensue.

As Wall Street Tries To Trade On Trump's Tweets, Problems Emerge

A problem has emerged as Wall Street scrambles to trade on Trump tweets: while HFT strategies can quickly identify that a stock was referenced in a tweet, isolating if the actual message is bullish, bearish or indifferent presents a major challenge.