Tags: MichaelLewis | economy | rigged | finance | secretcalendar

Author Michael Lewis: 'The Most Iconic Market in Global Capitalism Is Rigged'

The U.S. stock market is completely rigged against the average investor, and there is nothing we can do about it, according to Michael Lewis, the author of Liar’s Poker and The Big Short.

Instead, the market is being run by high-frequency traders using advanced computer programs and high-speed connections to jump the line ahead of regular investors, skimming billions of dollars to the benefit of large Wall Street banks and stock exchanges.

Lewis’ insight, featured in a recent 60 Minutes interview, comes after a year of researching the topic for his new book, Flash Boys.

“The U.S. stock market, the most iconic market in global capitalism, is rigged,” Lewis said during the interview. “It’s crazy that it’s legal for some people to get advance news on prices and what investors are doing.”

Lewis points out that a technology firm spent $300 million to build a fiber-optic line that would cut three milliseconds off the time it takes to communicate between New Jersey and Chicago, a distance of approximately 800 miles.

This “front running” of orders — where high-frequency traders see what orders are being placed and are able to jump the line and buy the stocks at a low price, only to then instantaneously resell the stocks back to the buyer for a few pennies more — is supposed to be illegal. But through faster and faster data transmission, high-frequency trading firms are able to skirt the law.

A few months ago, Sean Hyman, editor of Absolute Profits received an unmarked envelope in the mail that contained more proof of Wall Street’s “dirty little secret.”

The envelope contained a calendar with 19 specific stock investments, including the exact dates on which to buy, and when to sell, these stocks for maximum gains. Had you followed the calendar and bought and sold these 19 investments based on the exact 38 dates . . . you would have been practically guaranteed high returns . . . so much so, that over the past 45 years, you would have been able to outperform the market consistently by 250%.

After some research, Sean concluded that this calendar, apparently only distributed to high-level bankers, top investors, and trusted advisers, had been used since at least the 1960s, possibly longer, in order to get an edge over average investors.

Instead of sharing this calendar with their clients and helping them increase their wealth, Wall Street continued to push the “buy and hold” strategy to their clients — an inferior investment plan.

The reason why, according to Sean, was simple: “The ‘buy and hold’ strategy ensured the jobs of thousands of fund managers, brokers, and staff at these financial institutions. Releasing this information would lead to mayhem.”

Hyman, a professional investor who frequently appears on Fox Business, CNBC, and Bloomberg, has been working with a former nuclear mathematician to tweak, refine, and back-test this “secret” calendar. His latest research showed how this calendar could help an investor achieve an 18.79% annual return.

“My jaw dropped,” Sean explained to me, as even he was amazed by the results. “And that’s not all. We’ve got the calendar to the point where it is 96% accurate . . . meaning out of 100 trades, 96 are winners. And what’s more, we’re developing a technology based on this calendar to alert us to future market crashes.”

Naturally, my next question was to ask if Sean was willing to share his research with our readers. “Not yet,” he replied. “There are a few more tests we want to do first — 18.79% annual returns are good, but we can do better. I know I can get that number higher with less risk.”

Of course, any investor would be thrilled with 18.79% returns for the rest of their life. That is enough to turn every $1,000 into $31,300 over a 30-year period. But Sean wouldn’t settle for “good” returns.

So I waited months for him to perfect his version of Wall Street’s “secret calendar.”

A few days ago, Sean called me up and told me it was finally ready.

We immediately put together a video presentation of all his findings . . . (Click here to watch it now).

Personally, I’ve watched this video several times now. I’m still shocked at how simple, predictable, and consistent this investment plan is.

What’s more, inside this video, Sean shows you exactly how you can get access to one of these Wall Street “secret calendars” for free.

Click Here to Watch Sean’s Presentation, ‘Wall Street’s Secret Calendar Exposed!’



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2014-59-02
Wednesday, 02 Apr 2014 09:59 AM
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