market efficiency

High Frequency Trading: Do Regulators Need to Control this Tool of Informationally Efficient Markets?

<p><a href="http://www.professorhollybell.com/wp-content/uploads/2013/07/ID-10049803.jpg"><img class="alignleft size-medium wp-image-2570" alt="market efficiency" src="http://www.professorhollybell.com/wp-content/uploads/2013/07/ID-10049803-300x199.jpg" width="300" height="199" /></a>From the Cato Institute:</p> <p>High Frequency Trading (HFT) is a form of algorithmic trading where firms use high-speed market data and analytics to look for short term supply and demand trading opportunities that often are the product of predictable behavioral or mechanical characteristics of financial markets. Some opponents have argued that these practices create risk and require aggressive regulation.  In a new paper, professor of business Holly A. Bell argues that HFT is already being effectively regulated by the market and its participants.</p> <h3><a href="http://www.cato.org/publications/policy-analysis/high-frequency-trading-do-regulators-need-control-tool-informationally">Click here to read the Holly A. Bell paper</a></h3> <h3><a href="http://www.professorhollybell.com">Return to home page</a></h3>

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Incorporating the Rentier Sectors into a Financial Model

<div class="rpuEmbedCode"><!--rpuEmbedStart--> <script type="text/javascript" src="http://1.rp-api.com/rjs/repost-article.js?3" data-cfasync="false"></script> <div class="rpuArticle rpuRepost-f1307d68b4baad8db7373cd5cacbd435-top" style="margin: 0; padding: 0;"><a class="rpuThumb" href="http://s.tt/1ncuQ" rel="norewrite"><img style="float: left; margin-right: 10px;" src="http://img.1.rp-api.com/thumb/2884853" alt="" /></a> <a class="rpuTitle" href="http://s.tt/1ncuQ" rel="norewrite"><strong>Incorporating the Rentier Sectors into a Financial Model</strong></a> (via <a class="rpuHost" href="http://s.tt/1ncuQ" rel="norewrite">Market Shadows</a>)<a href="http://www.professorhollybell.com/wp-content/uploads/2012/09/ID-100578931.jpg"><img class="alignright size-medium wp-image-1934" title="ID-10057893" src="http://www.professorhollybell.com/wp-content/uploads/2012/09/ID-100578931-199x300.jpg" alt="" width="199" height="300" /></a> <p class="rpuSnip">Incorporating the Rentier Sectors into a <i>Financial</i> Model Courtesy of Michael Hudson By Dirk Bezemer and Michael Hudson As published in the World Economic Association’s World Economic Review Vol #1. ABSTRACT Current macroeconomics ignores the roles that rent, debt and the <u>financial</u> sector play in…</p> </div> <!-- put the "tease", "jump" or "more" break here --> <a href="http://www.professorhollybell.com/2012/09/18/incorporating-the-rentier-sectors-into-a-financial-model/#more-1931" class="more-link"><span aria-label="Continue reading Incorporating the Rentier Sectors into a Financial Model">(more…)</span></a></div>

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Financial Markets, Politics, and the New Reality

<div class="rpuEmbedCode"><!--rpuEmbedStart--> <script type="text/javascript" src="http://1.rp-api.com/rjs/repost-article.js?3" data-cfasync="false"></script> <h3 class="rpuArticle rpuRepost-e4e390e69253b2cba71333bd5c26fe4b-top rpuNoTitle" style="margin: 0; padding: 0;"><a rel="nofollow" class="rpuThumb" href="http://s.tt/1lc6r" rel="norewrite"><img style="float: left; margin-right: 10px;" src="http://img.1.rp-api.com/thumb/2766361" alt="financial markets"/></a> <a rel="nofollow" class="rpuTitle" href="http://s.tt/1lc6r" rel="norewrite"><strong>Financial Markets, Politics, and the New Reality</strong></a> (via <a rel="nofollow" class="rpuHost" href="http://s.tt/1lc6r" rel="norewrite">Market Shadows</a>)</h3> <p class="rpuSnip"><i>Financial Markets</i>, Politics, and the New Reality Courtesy of John Mauldin at Thoughts from the Frontline If you've been following my newsletter, you're familiar by now with my friend George Friedman and the geopolitical analysis company he founded, Stratfor. And if you've read any of George's work,…</p> <div class="rpuKeywords" style="display: none;">investors, markets, free trade zone, Germany, European Union, political economy, hedge funds, investment, political involvement, John Mauldin, European countries, next 100 years, capital allocation, European Central Bank, financial, tidal wave, political decisions, Millennium Wave Advisors, crisis, political reasons, contemporary investors, George Friedman, economic decisions, impersonal forces, corporations, heavy political involvement, Adam Smith, <u>Financial Markets</u>, investment decisions, monetary policy, active political involvement,

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Stock Market

Market Volatility

<h2>What's Causing Market Volatility and What Can We Do?</h2> I read an interesting short article this morning on <em>Seeking Alpha</em> in which Todd Campbell discussed the rising stock <b>market volatility</b> that has been happening since the 1970s. The article entitled “Volatility Across the Decades: It’s No Wonder We’re Edgy” (<a href="http://seekingalpha.com/article/647321-volatility-across-the-decades-it-s-no-wonder-we-re-edgy?source=feed">click here to view)</a> included the following graph that demonstrates the volatility he is referring to. He used the deviation of daily returns for each decade to measure volatility. <p style="text-align: center;"><a href="http://www.professorhollybell.com/wp-content/uploads/2012/06/volatility.png"><img class="aligncenter wp-image-1638" title="volatility" src="http://www.professorhollybell.com/wp-content/uploads/2012/06/volatility.png" alt="" width="504" height="301" /></a></p> While this is probably not surprising to anyone who follows the market, it certainly causes concern for those of us who would like to retire in the next 20 years or less. I do have a theory about why this trend is happening, but you’ll have to wait until the fall issue of <em>The Journal of Investing</em> to read about it.

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Are Financial Markets Organizations or Chaos?

<h3><a href="http://www.professorhollybell.com/wp-content/uploads/2012/04/67823q4dbhkgj61.jpg"><img class="alignright size-medium wp-image-1268" title="67823q4dbhkgj61" src="http://www.professorhollybell.com/wp-content/uploads/2012/04/67823q4dbhkgj61-300x199.jpg" alt="markets"width="300" height="199" /></a>Organizational Behavior and Financial Markets</h3> By Holly A. Bell In March I published an article in the journal <em>Insights to a Changing World</em> titled, “Efficient Financial <b>Markets</b> as Organizations: A Metaphoric Analysis”. The purpose of the article was to explore efficient financial <i>markets</i> from the perspective of organizational behavior. The purpose was <em>not</em> to establish patterns of behavior specifically, but to determine if the U.S. financial market shared the behavioral characteristics of other organizations or if it simply had non-ergodic qualities and acted in a chaotic manner. It was kind of a behavioral mental mapping exercise for me as I was working on another article that attempts to explain market volatility that will be published in another journal in the fall of 2012. The premise was that if <u>markets</u> are informationally efficient (as has been empirically proven), there must be some form of organizational

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