This and That: High-Frequency Trading, Cottage Ownership and more…
Wired magazine ran a story on high-frequency trading (HFT) in which computers execute thousands of trades maniacally hoping to earn profits of a fraction of a penny per share. The story details the lengths that Wall Street firms go to earn a few microseconds advantage over their competition. Hat tip to the Canadian Money Forum for sharing this article.
But before we think that we should put an end to speculative activity in the stock market, we should recall that thanks to electronic trading, transaction costs for retail investors has come down quite significantly, says financial advisor Equius Partners.
It’s not just Canadians who are chasing investments that sport a high current yield. Jason Zweig of the Wall Street Journal reported on the curious case of royalty trusts that trade in the US for far more than they are worth.
SmartMoney magazine is closing down its print edition and going digital. In its final print issue, the magazine staff shared lessons they have learnt over two decades of putting out a financial publication.
This article in the Financial Post argues that for many Canadians owning a cottage where they spend summer weekends and a couple of weeks vacationing just doesn’t make financial sense.
It was hard to escape news about the Canadian banks this week. The big five reported total profits of $7.8 billion in their latest quarterly report — enough to buy Tim Hortons outright and have some change left over to buy some double-doubles. Also, every one of the big five boosted their dividend payments to shareholders. If you own a fund like XIU, you are covered: the big five represent more than a quarter of XIU’s holdings.
Scotia Bank announced this week that it is acquiring the pioneering online bank ING Direct. Scotia Bank is making the right noises about keeping ING Direct largely intact and one hopes that the big red will follow through once the acquisition goes through.
The Star’s Ellen Roseman reported on a heart-breaking story in which a Group RESP subscriber lost more than 90 percent of his investment to fees due to the tragic death of his child.
The New York Times reported that with manufacturing jobs disappearing, it is women who bring home the bacon in many families these days.
And now for something different. This TV anchorman is probably wondering if he should have consulted a dictionary before using an unfamiliar word on the air.