There’s no denying the connection between tulips and derivatives in 1636. The Dutch Tulip Mania is often cited as the archetype for asset bubbles and the madness of crowds. It might better serve to inform our understanding of derivatives risk.…
View pageEditorial Note: Happy Holidays! We’re back from travels but will share our findings in the first Market Structure Map of the new year. Ahead of Christmas, we’re re-running the most-read MSM of 2015. Market structure should rank among your top…
View pageEDITORIAL NOTE: We’re getting far away from today’s Federal Reserve decision colliding with options expirations (VIX today, with more expirations tomorrow and Friday), escaping to the elbow of the Caribbean, the divide between windward and leeward on a catamaran around…
View pageLooking around at the market, we decided the only thing to do is go to St. Maarten. Safely at sea, we’ll wait out options-expirations and the Fed meeting next week and return Dec 21 to tell you what we saw…
View pageA war of words is unfolding in our profession. In case you’ve not followed, it’s about the market for the product you manage as investor-relations officers. Many of you have read Flash Boys, Michael Lewis’s (The Big Short is soon…
View pageIf the stock market reflects all information currently known, why are buyout deals nearly always done at a premium to market price? “Because, Quast, deals involve proprietary pricing models that account for synergies.” Sure. But I want you to think…
View pageAlgorithmic trading is Wall Street’s last best hope. So said the lead sentence in a story called Algo Wars in the May 30, 2005 edition of Investment Dealer’s Digest. That publication is gone and so is Lehman Brothers, co-leader of…
View pageWhy are stocks rising if earnings and revenues are falling? FactSet’s latest Earnings Insight with 70% of the S&P 500 reporting says earnings are down 2.2% versus the third quarter last year, revenues off 2.9%. Yardeni Reseach Inc. shows a…
View pageI debated high-frequency trader Remco Lenterman on market structure for two hours. Legendary financial writer Kate Welling (longtime Barron’s managing editor) moderated. Your executives should be reading Kate so propose to your CFO or CEO that you get a subscription…
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