Post on 04-Jun-2018
transcript
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 141
The Full StoryAlso available The Short Story Version
Find it at mikeonthemarketswordpresscom
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Many investors todayare feeling like thisand they donrsquot know
why
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 341
If this is their view of the poolhellip Could you blame them
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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A Just So Story tells you how something got the way it didIn a way that makes you think and chuckle andnot want to scream
And itrsquos a Just-So Story
Itrsquos a fish storyA fish story is about the one you thought you had on the hookThen it got away from youSometimes money and investing feels like that
This fish story is NOT a Tall Tale
So Irsquom going to tell you a storythat might help
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 541
The fish in this story are investorsand the water is the marketenvironment they swim in
I tell this story Just So you know what has
happened to the pool that retirement investorshave been forced to swim in
So maybe you know why you feel like somethingfishyrsquos going on
So maybe you can find help navigatingtoward shelter
So maybeyour retirement story
wonrsquot be about
The One that Got Away
Just So You Know
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 641
The standard industrydisclosure statements can beabout as useful as the sign
above
As an investor you want toknow if itrsquos safe to goswimming here right now
I can helpA LOT of todayrsquos trading is done
via complex algorithms onremote computers
A word on sharks before we begin
Sharks are not evil
Sharks are sharks -- they are eatersVery efficient eating machines
When the food (in this case money)becomes irresistiblethey will show up every time
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 741
I spend a lot of time working on my sharkdetection abilities
As the food supply multiplies (money)
so do the sharks
And as investing gets more technicalit takes more tools and knowledge to justkeep up with where they are
Itrsquos what I do
Back to the storyhellip
Sharks are part of the investing ecosystemSome investors enjoy the risk of swimming near them others do notThe trick is to know where they are most likely to beAnd to make investment decisions based on where they are not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 841
MIKE
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
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These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
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But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 241
Many investors todayare feeling like thisand they donrsquot know
why
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 341
If this is their view of the poolhellip Could you blame them
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 441
A Just So Story tells you how something got the way it didIn a way that makes you think and chuckle andnot want to scream
And itrsquos a Just-So Story
Itrsquos a fish storyA fish story is about the one you thought you had on the hookThen it got away from youSometimes money and investing feels like that
This fish story is NOT a Tall Tale
So Irsquom going to tell you a storythat might help
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 541
The fish in this story are investorsand the water is the marketenvironment they swim in
I tell this story Just So you know what has
happened to the pool that retirement investorshave been forced to swim in
So maybe you know why you feel like somethingfishyrsquos going on
So maybe you can find help navigatingtoward shelter
So maybeyour retirement story
wonrsquot be about
The One that Got Away
Just So You Know
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 641
The standard industrydisclosure statements can beabout as useful as the sign
above
As an investor you want toknow if itrsquos safe to goswimming here right now
I can helpA LOT of todayrsquos trading is done
via complex algorithms onremote computers
A word on sharks before we begin
Sharks are not evil
Sharks are sharks -- they are eatersVery efficient eating machines
When the food (in this case money)becomes irresistiblethey will show up every time
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 741
I spend a lot of time working on my sharkdetection abilities
As the food supply multiplies (money)
so do the sharks
And as investing gets more technicalit takes more tools and knowledge to justkeep up with where they are
Itrsquos what I do
Back to the storyhellip
Sharks are part of the investing ecosystemSome investors enjoy the risk of swimming near them others do notThe trick is to know where they are most likely to beAnd to make investment decisions based on where they are not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 841
MIKE
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
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httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
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But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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If this is their view of the poolhellip Could you blame them
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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A Just So Story tells you how something got the way it didIn a way that makes you think and chuckle andnot want to scream
And itrsquos a Just-So Story
Itrsquos a fish storyA fish story is about the one you thought you had on the hookThen it got away from youSometimes money and investing feels like that
This fish story is NOT a Tall Tale
So Irsquom going to tell you a storythat might help
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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The fish in this story are investorsand the water is the marketenvironment they swim in
I tell this story Just So you know what has
happened to the pool that retirement investorshave been forced to swim in
So maybe you know why you feel like somethingfishyrsquos going on
So maybe you can find help navigatingtoward shelter
So maybeyour retirement story
wonrsquot be about
The One that Got Away
Just So You Know
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The standard industrydisclosure statements can beabout as useful as the sign
above
As an investor you want toknow if itrsquos safe to goswimming here right now
I can helpA LOT of todayrsquos trading is done
via complex algorithms onremote computers
A word on sharks before we begin
Sharks are not evil
Sharks are sharks -- they are eatersVery efficient eating machines
When the food (in this case money)becomes irresistiblethey will show up every time
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 741
I spend a lot of time working on my sharkdetection abilities
As the food supply multiplies (money)
so do the sharks
And as investing gets more technicalit takes more tools and knowledge to justkeep up with where they are
Itrsquos what I do
Back to the storyhellip
Sharks are part of the investing ecosystemSome investors enjoy the risk of swimming near them others do notThe trick is to know where they are most likely to beAnd to make investment decisions based on where they are not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 841
MIKE
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
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httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
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The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
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They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
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And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 441
A Just So Story tells you how something got the way it didIn a way that makes you think and chuckle andnot want to scream
And itrsquos a Just-So Story
Itrsquos a fish storyA fish story is about the one you thought you had on the hookThen it got away from youSometimes money and investing feels like that
This fish story is NOT a Tall Tale
So Irsquom going to tell you a storythat might help
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 541
The fish in this story are investorsand the water is the marketenvironment they swim in
I tell this story Just So you know what has
happened to the pool that retirement investorshave been forced to swim in
So maybe you know why you feel like somethingfishyrsquos going on
So maybe you can find help navigatingtoward shelter
So maybeyour retirement story
wonrsquot be about
The One that Got Away
Just So You Know
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 641
The standard industrydisclosure statements can beabout as useful as the sign
above
As an investor you want toknow if itrsquos safe to goswimming here right now
I can helpA LOT of todayrsquos trading is done
via complex algorithms onremote computers
A word on sharks before we begin
Sharks are not evil
Sharks are sharks -- they are eatersVery efficient eating machines
When the food (in this case money)becomes irresistiblethey will show up every time
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 741
I spend a lot of time working on my sharkdetection abilities
As the food supply multiplies (money)
so do the sharks
And as investing gets more technicalit takes more tools and knowledge to justkeep up with where they are
Itrsquos what I do
Back to the storyhellip
Sharks are part of the investing ecosystemSome investors enjoy the risk of swimming near them others do notThe trick is to know where they are most likely to beAnd to make investment decisions based on where they are not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 841
MIKE
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
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Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
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And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
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But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
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IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
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Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 541
The fish in this story are investorsand the water is the marketenvironment they swim in
I tell this story Just So you know what has
happened to the pool that retirement investorshave been forced to swim in
So maybe you know why you feel like somethingfishyrsquos going on
So maybe you can find help navigatingtoward shelter
So maybeyour retirement story
wonrsquot be about
The One that Got Away
Just So You Know
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 641
The standard industrydisclosure statements can beabout as useful as the sign
above
As an investor you want toknow if itrsquos safe to goswimming here right now
I can helpA LOT of todayrsquos trading is done
via complex algorithms onremote computers
A word on sharks before we begin
Sharks are not evil
Sharks are sharks -- they are eatersVery efficient eating machines
When the food (in this case money)becomes irresistiblethey will show up every time
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 741
I spend a lot of time working on my sharkdetection abilities
As the food supply multiplies (money)
so do the sharks
And as investing gets more technicalit takes more tools and knowledge to justkeep up with where they are
Itrsquos what I do
Back to the storyhellip
Sharks are part of the investing ecosystemSome investors enjoy the risk of swimming near them others do notThe trick is to know where they are most likely to beAnd to make investment decisions based on where they are not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 841
MIKE
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 641
The standard industrydisclosure statements can beabout as useful as the sign
above
As an investor you want toknow if itrsquos safe to goswimming here right now
I can helpA LOT of todayrsquos trading is done
via complex algorithms onremote computers
A word on sharks before we begin
Sharks are not evil
Sharks are sharks -- they are eatersVery efficient eating machines
When the food (in this case money)becomes irresistiblethey will show up every time
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 741
I spend a lot of time working on my sharkdetection abilities
As the food supply multiplies (money)
so do the sharks
And as investing gets more technicalit takes more tools and knowledge to justkeep up with where they are
Itrsquos what I do
Back to the storyhellip
Sharks are part of the investing ecosystemSome investors enjoy the risk of swimming near them others do notThe trick is to know where they are most likely to beAnd to make investment decisions based on where they are not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 841
MIKE
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 741
I spend a lot of time working on my sharkdetection abilities
As the food supply multiplies (money)
so do the sharks
And as investing gets more technicalit takes more tools and knowledge to justkeep up with where they are
Itrsquos what I do
Back to the storyhellip
Sharks are part of the investing ecosystemSome investors enjoy the risk of swimming near them others do notThe trick is to know where they are most likely to beAnd to make investment decisions based on where they are not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 841
MIKE
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
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And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
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But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
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httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 841
MIKE
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 941
Industrial revolution (machine horsepower) modern transportation(not horses) modern communication (not Pony Express)
Stocks bonds corporations big banks wildcatters tycoons
Major Immigration Growing US middle class early global economy
AND hellipSTOCK INFORMATION hellip WAS TRANSMITTEDhellipLIKE THIShellip
and the world was starting to look like this
when financial markets yoursquod recognize
were born
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
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The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1041
the pool of stock market investors was small
Photo Credit Library of Congress Prints amp Photographs Division Bain News Service 1912 [reproduction number LC-DIG-ggbain-10782]
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1141
Things caused that pool to grow really big really fastBy the 1920s the financial scene in America and Europe
looked like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1241
Then this happened
Occupy Wall Street 10
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1341
The country thoughtldquoMaybe this shouldnrsquot happen againrdquo
(Guess which future President this is)
So Congress did a little of this
Glass Steagall Act
bull Commercial Investment
Banks will be separate
from Consumer Deposit
Banks
bull Yes completely
bull No not even a little bit
bull Yes We mean it
Investment Company Act
bullIf you play in the publicpool you will have rules
and you will follow them
bullYou will share your toys
(information) with thepublic Yes all of it
And gave us one of theseThe Securities Exchange Commission (SEC)rsquos job
was to police investing and weed out the rule breakers
R o n a l d R e a g a n
The unspoken rule for the Big Banks was this No you donrsquot have to like it What you did caused Big Problems
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1441
They were also separated from insurance companies but thatrsquos a whole different Fish Tale Or is it
Those of the
pretentious double names
were now fully separated
Investment CompaniesSuch as
Morgan Stanley
Goldman SachsBear StearnsLehman BrosEdward Jones
Legg MasonMerrill LynchDean Witter
The most important part was this
Banks Such as
Chase Manhattan
Bank of AmericaBank of New York
Barclayrsquos HSBC
CitibankUS Bank
State Street
from those
who stored the cashof individuals and businesses
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1541
This 1930s-model financial systemlooked pretty much the same for a very long time
Wersquore talking 50-60 years
Comparatively there was remarkable uniformity in the financial world
This pool in Kansas (a 1938 WPA project)helliphelliphelliphellip helliplooks remarkably like this one in Portland OR
A pool meant a rectangle with a deep end a shallow endseveral lifeguards and enough chlorine to turn your hair greenWhen someone said ldquopoolrdquo or someone said ldquoinvestmentsrdquo
you knew what they meant
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1641
Which means A certain set of attitudes and platitudes(ways of thinking and talking)
followed three generations of investors to the table
Sellwood Park Pool circa 1935 where my grandparents probably swam
For those 50-60 years therestill werenrsquot many investors inthe stock market pool Folksfunded their retirements withpensions bank CDrsquos corporate
bonds or insurance Manywouldnrsquot own stocks becausethey or their parents (wholived with them) rememberedThe Great Depression Oy
The investors might look a littleBORED standing there on theside of the pool butrespectable modest evenhealthy Until the mid-to-late1980s investments behavedgenerally as expected
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1741
And then a sea change occurred
More people started investing in stocks Why now
In 1981 Congress passed a law saying everybody could have an Individual Retirement Account(IRA) not just those who didnrsquot have a pension at their job You could buy stocks in your new IRA
More folks bought Mutual Funds too which are made up of stocks Remember Janus Or FidelityMagellan Or Vanguard Itrsquos easy to forget how new and exciting it was to finally have a chanceto participate in the stock market
Many retail-oriented brokers who sold stocks and Mutual Funds opened up shop They didnrsquot justcater to the wealthy like Those of the Pretentious Double Names
The Baby Boomers were in their 30-Somethings Just starting to save for retirement
Heady times were a brewinrsquo
Sound familiar
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1841
But there were still rules right
In 1999 Congress repealed The Glass Steagall ActInvestment Companies Deposit Banks and Insurance
Companies could once again officially join under a singlecorporate umbrella called a Bank Holding Company
Bank Holding Companies are Very Big Fish
If other reporters used my metaphor yoursquod hear them call Bank Holding CompaniesToo-Big-to-Fail-Fish ndashor-- Systemically Important Fish
I call them other things
Glass Steagall Act
These guys had been setting things up andtesting the waters for more than a decadeanyway so they were ready and raring to go
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 1941
The investment environment today is closer to this
These newfangled Water
Parks (we donrsquot call thempools anymore) havesprung up all over theworldmdashtheyrsquore a HUGEattraction
The water parks are likethe Bank HoldingCompanies Investorshave more and trickierways to ldquoJump Inrdquo thantheyrsquove had since beforethe Great Depression
Itrsquos important tounderstand It only looks like separate pools butthey are all connectedsomewhere
It no longer costs 50 cents to swim all day
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2041
Therersquos awhole lotmore of us
Wersquore allswimmingin the samefinancialwater
Asia cracked way open for trade at this time Rapid cheapcommunication followed Since then we have very nearlyachieved a Global Economy
Whether we want to admit that or not
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2141
Some investors havecreated oases--places most of uswill never get to
swim at
Hedge funds fit inthis category
Hedge funds are big
buyers of stock
You must be anaccredited investorto own shares in ahedge fund
Accredited personshave a net worth ofat least $1 million(your house doesnrsquotcount) or joint
income of $300o00
Now that we know about the poolletrsquos talk about who and what is
in there alongside our investments
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2241
IPOrsquos are another type of oasis When a corporation splits itself into pieces (or shares) that people can buy itrsquos called an Initial PublicOffering (IPO) or ldquogoing publicrdquo Investment Banks usually run the show and receive a fee For theirtroubles they sometimes also get first right to buy the IPO for themselves or offer shares to their
favorite people Then on the IPO date these early investors are allowed to sell their shares on the thesecondary market (you and I call it The Stock Market) for what the rest of us are willing to pay to ownthem
Other IPOrsquos are more about founders and funders recouping earlier investments (and a little extra for theirtroubles) Sometimes therersquos not a great deal of value left once they do so When this happens in an
actual swimming pool they blow the whistle and everybody has to get out
Some IPOrsquos are about raising money to grow the company
Itrsquos generally safer to see if a new stock will sink or swim
a little before you buy it
All IPOs get hyped into a feeding frenzy It can be hard to tell the froth fromcompanies with good fundamentals The dotcom bubble is the poster child for thisCompanies with little value sold for a lot of dollars
Vonage IPO raised $531 million
May rsquo06 IPO price $1700One month later $ 875 Wikipedia-Vonage
Dec 2011 $ 238 Yahoo Finance-(VG)
Too bad thisdidnrsquot have
one ofthese
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2341Photo Credit Library of Congress Prints amp Photographs Division Theodor Horydczak Collection [reproduction number LC-H812-T-M04-079]
Herersquos another oasis
It is a very exclusive pool
The authors of the rulebook arenrsquot subject to the rules
Try Googling this phrase
ldquoCongress exempt from insider trading lawsrdquo
Itrsquos illuminating
After the crisis hit Congress created a HUGE new bureaucracy toprotect investing and banking consumers One of the Senatorswho put his name on this bureaucracy received preferential
treatment from one of the lenders at the center of the housingcrisis Companies such as that lender employ lobbyists Lobbyistsspend money to influence lawmakers There is a $100yr limit ondirect lobbyist gifts to lawmakers Irsquod presume the perks theSenator received were worth more
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2441
Also in the wateris a class of swimmer called
Institutional Investors
They make very big waves
They do not turn on a dime
Pension Funds (both Public and Private)
Mutual FundsEndowment FundsForeign Governments (sovereign wealth funds)
Insurance Companies
and of course the aforementioned Bank Holding Companies who also invest
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2541
Herersquos another oasis Dark Pools Yes itrsquos really called that
hellipbut they are not illegal and are in fact growing You might say ldquoButeverybody knows secret backroom deals happen itrsquos just part of thegamerdquo Irsquod say just because something is legal doesnrsquot make it rightDark Pools are like cartels They create pricing inaccuracies
Institutional Investors (the whales) trade more and more often onprivate exchanges called Dark Pools Itrsquos just like it sounds
Nobody knows whorsquos trading how much or why
These Dark Pools tradethe same stocks you
and I own and rely onTruly Free Trade only
happens if both sides
have equal access toinformation If big
deals happen in backrooms the rest of us
donrsquot have thatinformation We
cannot see the full
picture of supply anddemand
It is tempting to sayDark Pools are evil
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2641
Herersquos a word
Who else is in the water
If the Discovery Channel did a show on these guys yoursquod see Hedge Fund Managers High Frequency Traders and Investment Bankers
Also Mergers and Acquisitions Guys like Gordon ldquoGreed is Goodrdquo Geckofrom the movie Wall Street or Real Estate magnates like Donald
ldquoYoursquore Firedrdquo Trump
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2741
These guys are Triathlete Level Investors
with investing muscles that look like this
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2841
They look like this in Lycra
Most of us shouldnrsquot go near Lycra
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 2941
This is the Donald J Trump Sharkskin suit
You can buy it at Macyrsquos
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3041
This is Donald J TrumpHis suits are made by
Brioni of Italy
I donrsquot think you canfind them at Macyrsquos
F F t
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3141
Fun Fact
International
Men ofMystery
also wearBrioni
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3241
I suspectthis is what individual investors
look like to a shark
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3341
Why does this picturecome up when I
Google ldquostockbrokerrdquo
This is the car I driveSometimes to the beach
I never thought Irsquod drive one of these But the kids can sit far enough apart that they canrsquot touch each other
I value that
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3441
But these guys have always been around
What are ya gonna do
I was once told bya Pretentiously Double Named One
Which made me wonderHow much movementAnd whorsquos making the waves
[insert nervous laughter ]
Wersquore not in the money storage business
Wersquore in the money movement businessldquo ldquo
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3541
But I digresshellip
Just keep swimming
Finding Nemo is a RegisteredTrademark of DisneyPixar Pixar
was Steve Jobsrsquo brainchild afterApple kicked him out I miss Steve
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3641
Individual Investor U$ DollarldquoThe Dow is at ___rdquo
786K
21M
32M
122M
468M
1639M
108B
201B
479B
Thatrsquos where The Banks were
deregulated Donrsquot forget theyrsquod been
testing the waters since the late 80s to
the early 90s And when did stocks get
popular Early-mid 80s
See the orange dots at 1999
Shares of stock traded daily
My point is This is the environment in the investment poolyou and your stockbroker grew up with
This is a chart of the Dow Jones Industrial Average
An index of 30 important US companiesI got the chart from Yahoo Finance which is free You can use it too
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3741
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3841
So you could be forgiven for feeling like this
rsquo hi i fi k l f fi h
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 3941
Isnrsquot this is a fine kettle of fish
I know of investments with reasonable returns and(I believe) a better chance of avoiding the price
waves that whales create and sharks loveThese investments make a lot of my clients more
comfortable
In my next article Irsquoll tell you what thoseinvestments are and how you can get them
Some investors get a kick out of wave-running andshark-avoidancemdashand thatrsquos OK
Others Not so much And thatrsquos OK too
If thinking about all this makes yougreen around the gills I want you to know thattherersquos ummm hellip other fish in the seahelliphellip
Check out the next page to find out how to make sure you get the rest of the storyhellip
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4041
Securities provided by Pacific West Securities member FINRASIPC Advisory Services through Pacific West Advisors a Registered Investment Advisory
To read the new stuff from theprivacy of your own Inbox
Educational erudite edgyenjoyable
Evenmoney can
be fun
Financial Advisor 971-212-9464
8132019 Dirty Pool Keeping afloat and finding the calm in teeming markets
httpslidepdfcomreaderfulldirty-pool-keeping-afloat-and-finding-the-calm-in-teeming-markets 4141