September 16, 20130Comments

13: E*Trade Babies

Online trading firms aim to exploit the gullibility of many retail investors by encouraging the myth that they can outperform professional money managers armed with vastly greater resources, experience and expertise. The E*Trade babies are the most glaring symbol of this myth. The symbol also reinforces the notion that investing is an easy task that takes no special effort or aptitude to succeed.

by David Trainer, Founder & CEO

October 20, 20110Comments

Jack Bogle: There Are No Investors Left, Only Speculators

Mr. Bogle, an invaluable voice of reason for investors over many years, suggests that there is too much speculation in our equity markets. His comments jibe entirely with my post, Rise of the Speculative Movement.

by David Trainer, Founder & CEO

November 19, 20102Comments

Bernanke’s Masterstroke Puts the Ball In the Fiscal Policy Court

Contrary to nearly every headline you read about monetary policy these days, I believe it is quite possible the Fed Chairmen Ben Bernanke is performing quite well and much better than any of his recent predecessors. In fact, I think he is directing monetary policy with unprecedented precision and skill.

by David Trainer, Founder & CEO

November 19, 20100Comments

Western Digital Corp (WDC) – free report for Ask Matt, Very Attractive Rating

HIDDEN GEM: Our detailed valuation model shows that WDC grew its “economic” profits by 226% while accounting profits grew 194% during its last fiscal year. Economic profits rose by $769mm while accounting profits rose by $912mm.

by David Trainer, Founder & CEO

October 27, 20100Comments

Wall Street’s Secret Plans To Continue Raiding the Capital Markets

In another excellent expose "Wall Street Proprietary Trading Under Cover", Michael Lewis exposes Wall Street's plan to exploit loopholes in the laws and regs to continue proprietary trading, the activity that was the primary downfall of Bear Stearns and Lehman Brothers.

by David Trainer, Founder & CEO

September 17, 20100Comments

Stock-Picking Matters More Than Ever

As follow-on to my 3-part Market Outlook series of posts, I am highlighting a quote from GaveKal research's Daily note today which supports my assertion that the "Easy Money Days Are Over" and that success in stock-picking will rely on superior analytical skills as opposed to the market-timing skills that have predominated most of the past 25 years (see Market Outlook Part 1: Rise of the Speculative Movement).

by David Trainer, Founder & CEO

September 2, 20104Comments

Market Outlook Part 2: The End of the Speculative Movement

I believe that most of the traders and speculators who have been successful enough to stay afloat will be forced to exit the business or shift to a value investment style - an endeavor in which I expect very, very few to be successful. And though there will be fewer speculators, enough will remain to keep the markets from being too efficient.

by David Trainer, Founder & CEO

September 2, 20102Comments

Market Outlook Part 1: Rise of the Speculative Movement

Since the early 1990s, we have seen huge growth in the number of speculators and their impact on the market. Belief that it was easy to make money in the stock market was the primary driver of this boom in speculation. As shown in Exhibit 1, it was VERY easy to make money in the equity markets from 1986 to 1999.

by David Trainer, Founder & CEO

June 7, 20100Comments

Investing vs Speculating

The difference between Investing and Speculating is much larger than Wall Street would have you believe. In fact, they could not be too more different activities. Speculating is gambling. Investing is intelligent decision-making.

by David Trainer, Founder & CEO