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David Trainer
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David is CEO of New Constructs (www.newconstructs.com), an independent research that specializes in unearthing key insights from the Financial Footnotes of Annual Reports. Having analyzed over 50,000 annual reports and their Financial Footnotes, New Constructs research regularly produces Hidden... More
My company:
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Hidden Gems and Red Flags
My book:
The Valuation Handbook
  • There Are No Investors Left, Only Speculators 4 comments
    Oct 20, 2011 11:06 AM

    Mr. Bogle, an invalu­able voice of rea­son for investors over many years, sug­gests that there is too much spec­u­la­tion in our equity markets.

    Click here to see the short interview.

    His com­ments jibe entirely with my post, Rise of the Spec­u­la­tive Move­ment.

    His asser­tions are backed by excel­lent stats:

    1. SPDR S&P 500 (SPY) turns over 10,000% per year
    2. Mar­kets direct $200 billion/yr to new invest­ments com­pared to $40 trillion/year in trading

    To the extent that invest­ing is sup­posed to be the process of direct­ing “cap­i­tal to its high­est and best use”, our finan­cial sys­tem is clearly fail­ing soci­ety while, quite mean­ing­fully, enrich­ing the mid­dle  men, i.e. Wall Street.

    Themes: Intelligent investing, Jack Bogle
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  •  
    David,
    I could not agree with you more. In my 26th year as an advisor, my client's risk tolerance is forcing them into lower returning investments because of the increased volatility in the equity markets. The increased volatility is a direct result of the actions of the high speed and speculative traders. The liquidity argument does not fly.
    21 Oct 2011, 07:16 AM Reply Like
  •  
    You are correct ... now we need to get the word out to the majority of "Investors" that are still attempting to play by the old rules and wondering why they continue to lose ground.
    With 36 years of investing...this is by far the most unpredictable market I have ever seen. Buy-&-Hold is dead, Dividends are uncertain, Interest rates are worthless, etc... where to turn and what to do next is the new battle cry.
    24 Oct 2011, 04:31 AM Reply Like
  •  
    Hello David.
    What do you think about DNDN? today had a nice pop probably ahead of Monday's earnings.
    Did you ever had the chance to consider it? If yes are you bearish, bullish?
    24 Feb 2012, 03:37 PM Reply Like
  •  
    Bearish on DNDN, get a Dangerous rating.
    Here is the report: http://bit.ly/ybEolj
    25 Feb 2012, 10:34 AM Reply Like
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