We’re having a hard time finding things to buy.
Chock full of meaty stuff, I don’t really think it’s limited to Wall Street:
When Keller wasn’t working sources worldwide, she was digging into vehicle costs by model, labor negotiations, management changes, market share, environmental regulations, currency fluctuations, consumer spending, car preferences, balance sheets, industry gossip and really anything else that could potentially affect profits and stock prices of auto manufacturers and suppliers. She would then type, rapid-fire, clearly and concisely, with accompanying tables and charts, her findings and conclusions. Those were published in a constant stream of output worthy of a large team of analysts. She tightly controlled her business.
“When times are good, intellectual capital is valued on Wall Street,” says long time Wall Street executive Jack Rivkin, “It is more of a meritocracy. In a downturn, political savvy and connections become predominant.”
One day in 2010, Palmieri had an epiphany. “I was at the management table with the CEO,” she says, “I sat there and realized, ‘I’m at the table. I’ve made it. I’ve networked, I’ve clawed, I’ve said ‘yes,’ I’ve said ‘no,’ I’ve put in all this time and effort and I was underwhelmed. What I was getting back was not acceptable to me.”
We discuss our naive understanding of how the stock market works, primarily, the motivations for people to buy and sell stocks.
We hope to start recording more frequently, sorry it’s taken a year. These will be over on DrunkAndRetired.com from now on too, just there, no annoying cross-posting unless I do it mistake, as in here ;>
Here’s how Hendershott’s latency-arbitrage strategy worked: Redline allowed him to use its “direct market access” — cables that run directly from exchange servers to its own. Redline’s server was co-located with that of BATS Exchange so that the “latency” on information and orders coming from BATS was cut down to barely one thousandth of a second. As a result, some of the quotes on public feeds such as the crucial “national best bid and offer” feed were a few milliseconds behind those Hendershott could see on his direct link with the exchanges. With a half-decent trading algorithm, Hendershott would have had ample time to buy Apple at a stale price with a guarantee that he could sell at a profit. Every couple of seconds. All day. Risk on the trades: zero.
Somewhere, queue programmers at IBM are getting all warm and fuzzy over this.