Investors unnerved by last weeks bankruptcy filing by Lehman Brother Holding and by Merrill Lynch’s abrupt sale to Bank of America can cross at least one worry off their list.   In general brokerage firms are required to keep clients assets, including 401k and other retirement plans, separate from their own holding.  The assets of mutual funds managed by the firm are also kept separate. (Of course, you still bear the risk of securities declining in market value). When a brokerage firm fails, customer assets are typically transferred to another […]

In tonights grad call, we stepped back and discussed some of the historic market conditions that we are currently trading in.  To really understand how to trade this market, we need to look at the market in two parts…News and Technicals. News Aspects: 1.      Fed keep pumping into the banking 2.      Government took over AIG 3.      Fannie and Freddie taken over 4.      LEH collapsed 5.      Commodities weakening…volatile 6.      Regulations: a.       Banning Short Selling…UK…banned short sales of all financial stocks till January  – b.      Talking about doing the same thing in […]