Investment account back up!

[California]

Pretty much. The vast bulk of trading is machine generated.

Those traders pay big bucks to locate their data centers close to the exchanges because the length of the wires between the exchange's computers and the trader's computers slows down their trades.

They're also front running the trades of retail investors like us. Stock brokers sell the deal flow to a trader so they can front run the trades. That nets them a tiny profit on all the trades they front run. Profit that should have gone to the retail investor. All the brokers do this. It shouldn't be legal but it is.

Yeah. I read that the most recent transatlantic cable was laid by a consortium of investment houses for micro-second faster trading, for an advantage over competitors who didn't participate.

 

[ultrarunner]

Guessing where the market might go was possible before the internet. A good sense of the public's wishes could help reveal the next opportunity.

Now - betting against computer and AI aided investment strategy, isn't a reasonable strategy. The big investment houses will always be a step ahead of you.

I read something recently that just might be the key to the puzzle. (Or tin-hat imagination, I don't know):

All of the big gains in the investment world, is the big guys betting against one another. The retail investor is sucked into 'investing' to earn a 'reasonable return' only because his money is needed to fund these large scale bets. In other words we're the sheep. While the giants go toe to toe using the funds we've provided them, to play with. True? I don't know.

Don't know if true but it mirrors my feelings too.

Even wanting to sell a position in a 401k had a built in delay...

 

[RSKY]

CDs have been attractive last few months with yields over 5%. I have taken advantage of this spike and locked in a three year spread of CDs that will mature around my ideal retirement year. I figure that will give me a guaranteed amount of funds that I can either draw from or reinvest. I’ll have access to that money without any concern for whatever the stock market is doing at that time. In the meantime that money is growing at 5% per year, which is higher than the historical rate of inflation. I did this with about 10% of the funds inside my Roth IRA and opted for CDs with a monthly coupon so I can see regular growth happening. I think it’s a good plan.

Sounds like you have a plan. Too many people, myself included, do not sit down and make long range plans before retiring. Even if you have to change your plan later you have something to guide you.

RSKY

 

[ponytug]

I highly recommend "Flash Mob Boys" as a great read if you want a peek behind the curtain, and how the flash traders make money on (nearly) every stock sale.

Still, there are more than a few folks running hedge funds who do not understand the difference between being lucky, and understanding something fundamentally. I was in a bar in NYC at one point and was a bystander to a couple of hedge fund traders talking about positions that had taken in a currency, all based on hearing that "Bob" had taken a position. Sheesh! Let's talk about ignorant lemmings. These were hundred million dollar bets on gossip. Unreal. (I vaguely knew one of them, so I suspect that the dollar amounts were correct.)

All the best,

Peter

 

[CloverKnollFarms]

Up a bit over 28% for the year. Next year will be interesting with the intersecting of so many variables. One thing is for sure, depreciation has been stagnant, as inflation outpaced it in many areas. Unless you own an EV, which only get cheaper by the week.

 

[two_bit_score]

Unless you own an EV, which only get cheaper by the week.

Is it true owners are burning them instead of trying to sell them used?

jk, at least a bit. What is the market for used EVs like?

 

[CloverKnollFarms]

Is it true owners are burning them instead of trying to sell them used?

jk, at least a bit. What is the market for used EVs like?

Well you can buy a new Model Y for $30k in some places this week. So... Bad