A month ago, Michael Lewis released his latest financial expose, “Flash Boys: A Wall Street Revolt.” Since then, high-frequency trading has been a hot topic in the investment world. And a controversial one.
“Flash Boys” exposed one of Wall Street’s little-known, sleazy underbellies. High-frequency trading is a $75.4-million-a-day scam that allows traders who use sophisticated computer programs to skim profits away from traders using simpler tools and techniques. Lewis’ book has received tons of media coverage from the likes of “60 Minutes” and “The Daily Show.” And investors have been mostly outraged by what they’ve heard.
This week at Wyatt Investment Research, it was our turn to look behind the curtain of high-frequency trading. We identified the one man most responsible for the unseemly practice, and detailed the story of a $3 billion high-frequency trading firm that had to cancel its IPO as a result of all the bad publicity.
For those wanting to hear a little more about “Flash Boys” and high-frequency trading, you’re in luck. We have free hard-back copies of the book available for any of our readers who are interested. Click here to learn more.
High-frequency trading, however, was just a small snippet of our coverage at Wyatt Research this week. Here’s what else was on our analysts’ minds:
Can the Market Defy “Sell in May” Again? – Investors didn’t “Sell in May” last year. The numbers say the odds are against another rally in the next six months. Can the market defy the odds again?
This Man Is the Face of High-Frequency Trading – Most people think of high-frequency trading as being nameless, faceless computers…silently skimming millions from average investors. Nothing could be further from the truth. High-frequency trading has a face.
The Best Way to Beat Sell in May – The Wall Street adage “Sell in May and Go Away” is once again upon us. And if history repeats itself we could be in for a rough summer. But I have an easy solution for the six-month slump.
Top 10 Dividend Stocks to Own Forever – Finding great stocks isn’t always about investing in the next Facebook (NYSE:FB). Rather, some of the best stocks are dividend stocks investors can own forever. Here are 10 that fit the criteria.
How One Blue-Chip Stock Fooled Every Investor – There are stocks that fit legendary investor Peter Lynch’s category of “stalwarts” – companies that are growing earnings in the high single-digit percentage zone, pay a solid and reliable dividend, and are often great core holdings for retirement portfolios. Many people consider Proctor & Gamble (NYSE:PG) to be one of those stocks.
How a Book Crushed the Virtu Financial IPO – Virtu Financial was on the cusp of rolling out what was on track to be a $250 million IPO. Then Michael Lewis’ “Flash Boys” was released, and we may never see Virtu on a public exchange.
Einhorn Says the New Tech Bubble Has Arrived – Billionaire hedge fund manager David Einhorn issued a warning to his investors. The message was simple: it isn’t whether or not there is a new tech bubble but rather when it will pop.
VIDEO: How I Made 47% By Trading Gold Miners – Gold miners continue to struggle as the price of gold remains stuck in the mud. But through one of his powerful options trading strategies, Andy Crowder has managed to make 47% in the past 10 months by trading gold miners. Here’s how he did it.
VIDEO: How Carl Icahn Spurred a Major Apple Rally – Apple (Nasdaq: AAPL) is the richest company in the world. But it’s always been stingy with its money when it comes to rewarding shareholders. Until now. Almost overnight, Apple became shareholder friendly. And investors can thank Carl Icahn for that.