Today marks the third year anniversary of an “intraday flash crash” that had devastating consequences. Specifically, on August 24, 2015, approximately 1,278 stocks “gapped down” more than 5% at the opening, so the NYSE stopped trading on those stocks.
Read Ron Kruszewski’s Letter to the SEC
There’s a line of argument in the financial press that suggests that active money management is dying, a victim of high fees and underperformance versus low-cost indexing that captures average market returns.
Your lawyer can’t take money from your opponent to give you bad legal advice. If you’re on Medicare, your doctor can’t take kickbacks from drug manufacturers for prescribing their drugs. But, under current law, your broker-dealer can receive monetary rewards and other perks for recommending certain investment products, even if those products aren’t in your best interest.
Wall Street has not been dealing well with disappointment recently.
First President Donald Trump came for the sanctity of U.S. jobs data. Now he’s challenging the Federal Reserve. Bond traders — at least for now — are taking the latest breach of executive tradition in stride.
The Vanguard Group published recently its “How America Saves 2018” report, a trove of data on more than 4.9 million retirement savers in 401(k)s, 403(b)s and other defined-contribution plans.
Rumors of the demise of medium-sized asset managers have proved to be greatly exaggerated, so far.