What we’re reading (6/30)
“Robinhood Agrees To Pay $70 Million To Settle Regulatory Investigation” (Wall Street Journal). “Robinhood Financial LLC has agreed to pay nearly $70 million to resolve sweeping regulatory allegations that the brokerage misled customers, approved ineligible traders for risky strategies and didn’t supervise technology that failed and locked millions out of trading. The enforcement action is a blow to the fast-growing online brokerage, which was launched in 2014 and has won over users with commission-free trades and its sleek mobile app.”
“Retail Traders Account For 10% Of U.S. Stock Trading Volume - Morgan Stanley” (Reuters). “Retail investors currently account for roughly 10% of daily trading volume on the Russell 3000, the broadest U.S. stocks index, after peaking at 15% in September as lockdown boredom and extra savings triggered interest in stock markets, Morgan Stanley said on Wednesday.”
“Farmland Investing: Impact Beyond Returns” (Worth). “Farmland is the latest asset class to be revolutionized by the fintech wave. Whether it’s through REITs, like Farmland Partners, commodity ETFs or crowdfunding platforms, farmland sticks out among investors, both in terms of its attractive return on investment and its potential to increase the sustainability of the agriculture sector…Between 1992 and 2020, farmland returned an average of 11 percent per year while the stock market returned an average of 8 percent.”
“Investing During An Era Of Speculation” (Morningstar). “Such is the current condition in the United States. Luck, confidence, and wealth have created an age of speculation. Signs of economic aggression are everywhere. Stocks are soaring, thanks in part to record trading volume from retail investors. In addition, alternative investments are thriving. Cryptocurrencies, special-purpose acquisition companies, and nonfungible tokens have all sprung from dragons' teeth, although only the former marketplace yet rates as truly large.”
“America's Central Bank Helped Spark The US Housing Boom. Now It Fears It Created A Monster.” (Business Insider). “Some Fed officials see cause for concern. The mortgage-backed securities acquisitions could be having "some unintended consequences and side effects" that should be weighed against their benefits, Robert Kaplan, president of the Federal Reserve Bank of Dallas said on CNBC late last month.”
