The curse of free trading
When the cost to trade a stock went to $0 a few years ago, largely initiated by small platforms and brokerages, all the big banks and brokerages (Fidelity, Schwab, TD etc.) got into a race to be the first to offer them. Their rationale was that they will make up the...
Wall Street bows to “Pump and Dump” schemes once again
U.S. stocks suffered their biggest one-day percentage drop in three months on Wednesday, followed by a modest bounce back on Thursday and then further sell off on Friday. This is despite the central bank keeping overnight interest rates near zero and making no change...
Deficit Dynamics: Free Lunch Forever?
In the past four years, U.S. government debt has increased by $7 trillion to $21.6 trillion. President Joe Biden has committed to a spending program that could add $1.9 trillion more in the year ahead. At 100.1% of gross domestic product, the debt already exceeds the...
New Normal is a cliche that is becoming very old
The "New Normal" phrase was used sporadically until the financial crisis in 2008, when Mohammad El-Erian, the CEO of PIMCO, used the term stating that the post-subprime economy could mean subpar growth as new normal. Since then, “New Normal” has meant everything from...
Stock Market outlook for 2021
It is a tradition around this time of year to make predictions about what stock market holds for investors in the following 12 months. These predictions garner a lot of attention and many investors take the top stock picks by the pundits seriously, and when markets...
What else can go wrong in the next 10 days?
After another week of bizarre behavior from the President that brought scenes that harken back to those only seen in disorderly regimes, one wonders what else is left in his Presidency? With his legacy tarnished beyond repair and bringing to an end, by all counts, the...
Tesla added to the S&P 500 and brings with it unwanted volatility
On Monday Dec 21, 2020, Tesla will officially join the S&P 500. Its inclusion into the index will prompt dozens of index funds and ETFs that track the index, into buying the stock, whether they like it or not. On Friday this week, in the last 10 minutes of...
Chasing IPOs is a loser’s game
2020 has been tough on everyone but there are some, firmly ensconced in their mansions brooding, not about the corona virus, but regretting having missed out on Tesla’s electrifying ascent this year. Since its 2010 IPO, the stock has turned in, a not so modest, return...
The disgrace when the world moves on without you
The popular saying “Ignoring someone is the highest form of disrespect” is hitting our ex-President Trump smack in his face. Wall Street is hitting all time highs, unemployment has dropped to 6.5% and the vaccine for the coronavirus is ready to be rolled out...