Tags: Streettalk | Advisors | Markets | Rigged

Streettalk Advisors CEO: Markets ‘Absolutely’ Rigged

By    |   Monday, 12 Mar 2012 07:35 AM

Washington churns out data that can mean hefty gains or losses for a lot of people and there are growing concerns that a select number may be gaining access to it ahead of the masses.

Before the release of Friday's highly anticipated jobs report, the Daily Ticker asked Lance Roberts, CEO of Streettalk Advisors, whether the markets are rigged against the individual investor. His response was “absolutely.”

CNBC says the monthly jobs report from the Department of Labor can move financial markets around the world — generating millions in profits for traders who are well positioned for it.

Editor's Note: Wall Street Insider Exposes Death of Main Street America

Even the government is concerned that some are positioning themselves unfairly.

According to CNBC, officials at the U.S. Energy Information Administration have taken steps to block computers operating from certain internet protocol addresses from accessing the administration's websites, arguing that some users appear to have a “malicious intent” to slow down the release of data for the general public while speeding it up for themselves.

If you're trying to look at economic data and you are hitting refresh on your Internet browser, you are so far behind Wall Street you'll never catch up, Roberts told the Daily Ticker.

The efforts to manipulate the speed of government agencies release of data “shows you where we have evolved to,” Roberts said.

It's not just corruption that places investors at a disadvantage. The problem is that the game of investing has changed. At one time, individuals could buy stocks and make decisions based on companies' quarterly or annual financial reports with great success, but in this environment of algorithmic trading, speed is king.

The major Wall Street firms are putting computers next door to the major exchanges because this is about sub nanosecond trading, Roberts told the Daily Ticker.

“You gotta change and play by different rules,” he told the Daily Ticker. Timing and trends are much more important in the short-term, he added.

Editor's Note: Wall Street Insider Exposes Death of Main Street America



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