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'Flash Boys' IEX stock exchange opens for business

latimes.com

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Re: 'Flash Boys' IEX stock exchange opens for business

#151

Post by davidw »

nekopa wrote: post #131
davidw wrote: post #17

Earlier quoted context omitted.

How comfortable are you seeing the value of your investment decline? Edit: WTF, downvoter: that's entirely what his question comes down to. If he's cool with it, then maybe something riskier might be warranted. If not, then 'sitting in the bank' might be ok.

I didn't down vote you, but your original comment didn't add much to the discussion, and could be viewed as snark. If your edit, minus the wtf, had been in the original comment, then probably no one would have downvoted.

It wasn't intended to be snarky, but brief. If you can't afford to lose money on an investment, seek out something stabler.

Re: 'Flash Boys' IEX stock exchange opens for business

#152

Post by sseveran »

lmm wrote: post #149
sseveran wrote: post #142

Earlier quoted context omitted.

It depends on what you mean by impact. A market makers role is to provide market participants the instantaneous ability to buy or sell a security. They compensated a small amount for providing this service. If someone is using very poor execution techniques the price could worsen, however most large asset managers and brokers that serve them have quite advanced execution technology. The actual impact of modern market…

Vanguard invests almost purely passively, and does not generally take directional views. I agree HFT benefits Vanguard but that doesn't contradict my point at all.

Buy and hold is a directional view.

Re: 'Flash Boys' IEX stock exchange opens for business

#153

Post by lmm »

sseveran wrote: post #152
lmm wrote: post #149

Earlier quoted context omitted.

Vanguard invests almost purely passively, and does not generally take directional views. I agree HFT benefits Vanguard but that doesn't contradict my point at all.

Buy and hold is a directional view.

Let's not get into a semantic argument. The point is that Vanguard doesn't do fundamentals research or participate in capital allocation (in a meaningful sense; Vanguard does allocate capital but in proportion to existing allocation); they just invest passively and hope to earn the return of the overall market.

Re: 'Flash Boys' IEX stock exchange opens for business

#154

Post by [deleted] »

gd1 wrote: post #150
harryh wrote: post #80

Earlier quoted context omitted.

I thought about your question on my walk home from work today. I decided that as much as jocks vs geeks is a powerful force, a more powerful force is people's distrust of middlemen. People don't really understand that liquidity provisioning is a service that needs to be paid for. They think that if we could just wipe all middlemen off the face of the planet that buyers could just trade with sellers and we'd all save…

It's not so much distrust of middlemen, as it is distrust of anonymous middlemen. And also automated middlemen. People are happier getting shafted by a person they can see than a bot they can't. Otherwise, they would be hurling abuse at Apu down at the Kwik-e-mart when he charges them 30% extra for a quart of milk just because he bridges time (11pm) and space (down on the corner) to provide liquidity and make it conv…

[deleted]

Re: 'Flash Boys' IEX stock exchange opens for business

#155

Post by eru »

murbard2 wrote: post #32
eru wrote: post #8

Earlier quoted context omitted.

Those are just different faces of the same coin.

No, well functioning exchanges affect the amount of capital that gets invested in ventures not how well it is allocated.

People are looking forward. How much money individual startups can raise (or established companies when increasing capital) depends on their expectations of future prices on the exchanges.

Re: 'Flash Boys' IEX stock exchange opens for business

#156

Post by sseveran »

lmm wrote: post #153
sseveran wrote: post #152

Earlier quoted context omitted.

Buy and hold is a directional view.

Let's not get into a semantic argument. The point is that Vanguard doesn't do fundamentals research or participate in capital allocation (in a meaningful sense; Vanguard does allocate capital but in proportion to existing allocation); they just invest passively and hope to earn the return of the overall market.

Its not semantics. You simply don't know much about the asset management business. Vanguard has numerous actively managed offerings. For example Windsor (http://performance.morningstar.com/fund/performance-return.a...). But there are others like the Admiral funds.

Re: 'Flash Boys' IEX stock exchange opens for business

#157

Post by lmm »

sseveran wrote: post #156
lmm wrote: post #153

Earlier quoted context omitted.

Let's not get into a semantic argument. The point is that Vanguard doesn't do fundamentals research or participate in capital allocation (in a meaningful sense; Vanguard does allocate capital but in proportion to existing allocation); they just invest passively and hope to earn the return of the overall market.

Its not semantics. You simply don't know much about the asset management business. Vanguard has numerous actively managed offerings. For example Windsor ( http://performance.morningstar.com/fund/performance-return.a... ). But there are others like the Admiral funds.

Any big enough company has small fingers in many pies. Vanguard's focus and specialty is their low-cost index (and similarly passive) funds.
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