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Stockbrokers lose clout

The rise of demutualized stock exchanges

Most Exchanges Are Now Floorless

Securities exchanges are being transformed from “stockbrokers’ clubs” into profit-oriented companies selling services to customers. Long the ‘masters of the universe’, stockbrokers are expected to become less influential. Free from the constraints of small broker-dealers, demutualized exchanges are in the midst of rapid modernization and dramatic change. Computerized trading, book-entry settlement, central depositories, and cross-border exchanges are now the norm, not the exception.

Hugo Chavez

The US bond market’s friend

Hugo Chaves

On January 11, 2007, Hugo Chavez Frias was sworn in for a third term as Venezuela’s president, promising to expropriate strategic sectors of the economy, specifically public utilities and oil properties and to generally run rough-shod over property rights and the rule of law. This is unadulterated good news for the US domestic bond markets. Perhaps we should light a candle to Saint Jimmy.

Featured articles on inside pages

Stock buybacks

Stock buybacks and dividend equivalency

Corporations have argued that stock buybacks are equivalent to dividends. This article explains why this is not true and why suggesting buyback-dividend equivalency may constitute fraud.
More ...

Securities Analysis

Are investors being misled?

Mutual funds are sold primarily on the basis of 'performance' measured by historical 'total return'.The famous Morningstar 'star' rating system is based on 'total return', in this case 'risk-adjusted total return' relative to funds of the same asset category.
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US Politics

Why are the Super-Rich often liberals?

If we are to believe the old adage that, 'people vote their pocketbooks', why are so many of the Super-Rich ardent supporters of the Democratic Party? Why do the liberal Super-Rich seem to act in a way that is so contrary to their selfish interests and economic well-being? Here I show how capital flow analysis of the Federal Reserve flow of funds accounts provides an answer to this apparent conundrum. More ...

US equities

Professor Siegel’s Epiphany

The topic "Baby Boom — Baby Bomb?" was debated by Michael Milken and Professor Jeremy Siegel in April 2006. This debate was featured in BusinessWeek in the article, "When Boomers Cash Out: A buy-and-hold legend sees tough times ahead." Professor Siegel is the guru of the Common Stock Legend.
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US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

What Is ‘International Liquidity’?

It used to be that the term 'international liquidity' meant the relative amount of resources available to a nation's monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation's currency held by foreigners. More ...

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Capital Flow Watch has hundreds of articles on economics and investments.

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Stock Quotes

DJIA10860.26  chart +1.86%
NASDAQ2381.22  chart +2.33%
S&P 5001148.67  chart +2.12%

Ftse 1005598.48  chart +0.93%
Dax6298.30  chart +1.84%
Cac 403782.48  chart +1.94%

Nikkei 2259471.67  chart -0.99%
Hang Seng Index22119.43  chart +0.33%
Straits Times Ind3092.68  chart +0.31%

Eur To Usd1.35  chartN/A
Usd To Jpy84.19  chartN/A
Gbp To Usd1.58  chartN/A

2010-09-24 16:01