Survey: Most Retail Investors See Algorithmic Trading As Hurting Stock Market

In an attempt to limit the impact of fast-trading robots, the New York Stock Exchange (NYSE) is imposing a news embargo for listed companies in the minutes after the market’s 4 p.m. (Eastern) close. According to a Wall Street Journal article, the NYSE, a unit of Intercontinental Exchange Inc., plans to prevent firms from issuing…

 

The Individual Investor’s Guide to Exchange-Traded Funds 2016

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: AAII Model Portfolio Update: Introducing the Level3 Passive Portfolio AAII’s founder, James Cloonan, introduces his new Level3 Passive Portfolio, which is based on research carried out for the writing of his forthcoming book “Investing at Level3.” It is an ETF portfolio of index funds meant to…

 

Where Is the Bond Armageddon?

On Wednesday, The Wall Street Journal published an article headlined, “Rock-Bottom Bond Yields in Europe Hit All-Time Lows.” Thursday morning, a headline on The Financial Times’ website declared: “Relentless: Bund Yields Take Fresh Step Down.” The headlines were written in reaction to what is occurring in global bond markets. Earlier today, yields on the 10-year…

 

Social Media Can Feed Investor Panic

Social media has become ingrained in our daily lives, but for investors, this could come at a cost. A Wall Street Journal article discusses the impact between knowing what others are thinking and the performance of one’s investment portfolio in the next market crash. The article cites a 2013 paper from neuroeconomists Benedetto De Martino and colleagues, then…

 

Peter Lynch, Clarified

Twenty-five years ago, Peter Lynch stepped down as manager of Fidelity’s Magellan Fund, bringing to an end a successful 13-year run during which he averaged a 29.2% annual return. Lynch is credited with the investment strategy of “investing in what you know,” but in a recent Wall Street Journal article, he tries to set the…

 

Is There a Bond Market Liquidity Crisis?

The Wall Street Journal reported today on a growing debate in investment circles: Has bond market liquidity deteriorated since the financial crisis? Now, according to the report, the International Organization of Securities Commission is trying to address the issue. IOSCO surveyed about 100 banks, asset managers, trading platforms and regulators from August to October, according…

 

Market Volatility Disrupts Fund Pricing

The historic volatility the markets saw at end of August not only rattled investors, it proved to be too much for the software used to price a number of funds and ETFs provided by some of the Wall Street’s biggest firms. In a Wall Street Journal article, author Leslie Josephs outlines how a “software glitch”…