Temporary restraining orders and overly prescriptive and punitive compensation plans are poor responses to the realities of today’s market.
A battle is brewing between Wall Street and stock exchanges. Wall Street says it’s fighting for ordinary investors, but don’t be fooled. Like everything else on Wall Street, this dispute is about the bottom line.
Don’t be so quick to believe the dirt you hear about brokers.
The arrest of a partisan extremist who mailed explosive devices to political and media critics of President Donald Trump was a reminder of what happens when rhetoric turns nasty.
The rule, which the Department of Labor first proposed in 2015, required brokers to act as fiduciaries — to put their clients’ interests ahead of their own — when handling retirement accounts. It sounded simple, but it meant that brokers would have to rethink the way they do business.
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.
Truly passive index and exchange-traded funds are winning over many financial advisers.