Posted by: Matthias Paul Kuhlmey
As featured at WealthManagement.com
“Does the retail investor really stand a chance to make money in the long run?” was a question posed recently by an industry friend. Before drawing any conclusions, let’s decide who would be on the other side of the retail crowd. Much has been reported about high frequency trading (HFT) firms, at least some of which was based on a public debate triggered by Michael Lewis’s latest book, “Flash Boys,” suggesting that the entire U.S. stock market is “rigged,” leaving so-defined “black box traders” in a far better position to capture market returns than us “regular Joes.” I cannot intelligently comment on Lewis’s point, as it is a complicated matter, which, quite openly, I do not know enough about. My own findings are somewhat peculiar, but lead me in a different direction altogether.
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