Stock markets.
Ever wonder what all the fuss is about when the stock market makes a big move up or down? What does it have to do with your everyday activities or long-term hopes and dreams?
Whether you invest or not, the workings of the stock market almost certainly touch your life. Either through your retirement fund, your mutual fund or just because you work for a place that invests -or is invested in. The 2008 stock market crash was devastating to the economy and to the many who lost jobs and homes. While the recovery has had a long run, fears of a coming recession and another crisis in the securities markets are expanding, like an ever growing tidal wave.
Regulation - aka investor protection - has not kept up with changes in technology and trading practices. Nor is it prepared for the havoc sophisticated new products had and will have on the markets, investors and the economy. Add to that the manufactured volatility from the trade wars, and we can feel the storm brewing. The next tsunami is coming...
Whether you invest or not, the workings of the stock market almost certainly touch your life. Either through your retirement fund, your mutual fund or just because you work for a place that invests -or is invested in. The 2008 stock market crash was devastating to the economy and to the many who lost jobs and homes. While the recovery has had a long run, fears of a coming recession and another crisis in the securities markets are expanding, like an ever growing tidal wave.
Regulation - aka investor protection - has not kept up with changes in technology and trading practices. Nor is it prepared for the havoc sophisticated new products had and will have on the markets, investors and the economy. Add to that the manufactured volatility from the trade wars, and we can feel the storm brewing. The next tsunami is coming...
An update to our article on Chris Colins and the insider trading allegations.... The former NY Congressman pled guilty yesterday to "conspiracy to commit securities fraud and making false statements. Each charge carries a maximum sentence of five years in prison." Read the entire article....
In a related article, after members of Congress were prohibited in 2012 from using insider information to guide their trading activity, they became suddenly and surprisingly unskilled at picking stock market winners. An article in today's Economist notes:
"A recent paper by Serkan Karadas, an economist at the University of the South, suggests that some traders on Capitol Hill may nonetheless have done nicely. Mr Karadas collected data on transactions between 2004 and 2011 and found that congressional portfolios generated healthy returns in the short run, when time-sensitive private information can be exploited. This was especially true for powerful Republican members on influential committees (see chart, right panel). Mr Keradas found that the abnormal returns disappeared after 2012, when the Stop Trading on Congressional Knowledge (STOCK) Act forbade members of Congress from exploiting private information obtained from their privileged position for personal gain. Mr Collins, it seems, did not take heed."
In a related article, after members of Congress were prohibited in 2012 from using insider information to guide their trading activity, they became suddenly and surprisingly unskilled at picking stock market winners. An article in today's Economist notes:
"A recent paper by Serkan Karadas, an economist at the University of the South, suggests that some traders on Capitol Hill may nonetheless have done nicely. Mr Karadas collected data on transactions between 2004 and 2011 and found that congressional portfolios generated healthy returns in the short run, when time-sensitive private information can be exploited. This was especially true for powerful Republican members on influential committees (see chart, right panel). Mr Keradas found that the abnormal returns disappeared after 2012, when the Stop Trading on Congressional Knowledge (STOCK) Act forbade members of Congress from exploiting private information obtained from their privileged position for personal gain. Mr Collins, it seems, did not take heed."
First the book, now the podcast!
In our first episode of Re-Visioning Investing, we tell you about us and how we ended up writing the book together.
Listen to Episode #1 With all the volatility in the markets and all the talk of the pending recession, we want to share our insights about the previous crash, the inability of the regulatory structure to protect investors - its original charge when it was initiated in 1933, how investors might protect themselves in the crash on the horizon, and how future crises might be mitigated or avoided altogether. Follow us on Twitter: @JenaTMartin & @kakunz - #stocktrends |
Episode #2 - coming in October.
Do you have questions about the book? What, exactly, does investor protection mean, from a practical standpoint? How do you prepare for a market downturn? How do you weather a recession? Over the coming months we will tackle these questions and more in our monthly podcasts. We're getting ready for the next one - after a slight, unexpected delay - it will be posted in October... what would you like to hear? |
Holding back the flood.
We recently talked with April Johnson at West Virginia Magazine, about current happenings in the stock market, our thoughts about the next recession, and how we might create more stable financial markets. We hope you will read the article, Holding Back the Flood, and look forward to your comments.
How have your investing strategies changed since the 2008 crash? |
The indictment of Congressman Chris Collins prompted our new article on insider trading. Don't miss it! theconversation.com/what-is-insider-trading-the-crime-rep-chris-collins-was-charged-with-101297 
A fabulous discussion of our book at the Author Meets Reader panel at the International Law and Society Conference in Toronto on Thursday.
Our thanks for a rousing discussion to those in the room, the terrific moderator, Ellen Berry, University of Toronto, and. especially, the brilliant panelists: dre cummings, John Marshall School of Law, Joan Heminway, University of Tennessee, and Nicola Sharp, University of Illinois College of Law. |
Compensation for Cheated Investors Act (S. 2499), a new bill, written by Sen. Elizabeth Warren, D-Mass., and co-sponsored by Sen. John Kennedy, R-Louisiana, would require the Financial Industry Regulatory Authority Inc. to establish a fund financed by Finra fine money to cover awards that firms and brokers fail to pay to customers who win arbitration claims. The arbitration process stacks the deck in the firms' favor. We have to ask... is cheating customers out of their awards one of the ways these firms are seeing record profits?www.investmentnews.com/article/20180530/FREE/180539992/sen-warren-gets-republican-cosponsor-on-bill-to-fund-unpaid?NLID=daily&NL_issueDate=20180530&utm_source=Daily-20180530&utm_medium=email&utm_campaign=investmentnews&utm_visit=164202&itx[email]=fbaa376e51d3837d681fe5eeb4290c50c84d9d09e8154eb2ae1e872f3f3ee105%40investmentnews
Read our latest article about the recent Dodd-Frank repeal-lite legislation at www.chicagotribune.com/sns-wall-street-regulations-need-a-facelift-not-a-minor-dodd-frank-makeover-97136-20180523-story.html
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