The Long-term Investor: An Endangered Species?

By Gene Marbach

Some years back a veteran stockbroker joked, "I’m long the stock. That means I’m holding it until lunch time…" By today’s standards I’m not sure that remark is much of an exaggeration.

Transparency builds trust, and our financial markets have been built on trust. Right? Well, somewhat. You see, transparency doesn’t encompass all facets of the markets. With the rise of new products and trading venues (e.g., Black Pools, OTC derivatives), transparency has declined and risk has increased, particularly for individual investors. High frequency traders are replacing longer-term interests. Our financial markets have become gambling casinos...

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