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All that and more coming up -- first our top story tonight the markets today rocketed to a new high but it's not time for celebration.
Those are not just my words those are also the world's words that is of Charles Schwab the legendary investor who brought Wall Street to main street.
Where is that investor now -- as sharply written column in the Wall Street Journal today Schwab described the markets is little more than a casino.
Not what he envisioned when he started his firm 42 years ago today.
-- -- the markets are dominated by high frequency traders gaming the system.
Glitches to stabilizing the system -- -- government policy I eat taxes pushing the small investors to the to the sidelines.
But -- we're always looking out for -- -- your money here on the Willis report for more let's bring in Jack -- an editor at parents dot com and Fox Business is very -- Charlie Gasparino author of the best selling book.
Circle ran yelling we wanted to be addressed the fact that have that would even have to hear my -- -- -- I would ask you about some really interested in what you had to face appears Schwab are firm was founded forty years ago on the belief that all Americans.
Should have the opportunity to invest in the stock market with the same advantages available institutions and the big guys.
He says they don't have it what do you say well I.
I would say Charles Schwab is talking his own book right now I have loved -- is an -- now worrying that small buses are out of the market cannot use and the Schwab discount brokerage system so he's worried about that.
I will say this and here's where.
And he's kind of right I mean you know you have investors don't like to the fact we have flash crashes they don't like high frequency traders.
Trading ending you know there's always -- they don't like they don't like taxes like typically you -- -- -- I let go out there are you read a great Bloomberg column today where they talked about if you were in.
Index funds as opposed to hedge funds -- if you were in index -- you weren't stock picking.
You basically made a lot of money.
You don't have that you -- I think the 1001 book talks about.
Is that there's an information age to Wall Street is no doubt that high frequency traders have an information -- You should be playing in that field should be played in a different feel.
Like you make you don't you're not a professional investor you're the average guy you -- you -- you're an average guy.
Invest in -- mutual fund.
But -- You know I -- and funny hats to the stock market -- as an individual investor I should be able to play into the national spotlight.
And not worry what individual stocks not archives are not need to be in but they should know they should do everything loosely that I just said okay let's make they should be given -- and they are deployed at the southern state.
I make let's make the FDA equal we're short guys like me can play I'm not it's the same way you know what it's not it's.
Oh meritocracy mortgage smarter people do better in the -- they do with Portland Steve Cohen I forget about your furniture individual forget about it's at a -- Steve Cohen.
Is better at treating then you.
Don't compete with -- -- and I think it says if you talent though is in trouble right now who didn't -- any trouble right a lot of people are different.
I -- seeing -- -- due to -- areas Warren Buffett they have the same playing field you know she's an investor he's an investor but you're talking about speculators.
Speculators who have a computer advantage over the rest of us I mean there's a -- laptop here but the guys on the southern tip of Manhattan.
Can do a lot faster than you -- I think that's the problem but Buffett has an information edge to -- does have a -- -- that's true but again that's for long term about.
Still has an -- I'm having to go up against professionals -- -- -- -- -- good yeah.
When you're a Smart if you're a Smart investor.
You put your money in places where you can make money and -- -- her index fund to -- don't want.
Most went -- just can't beat the index yeah.
Is that where I'd do it right up well if you play tomorrow yeah right now those -- you put your money the S&P 500.
Back in March 2009 and held it to today how much would you be up.
Well I've -- I.
I did all that Chrysler recently was if you had not lost decade right you put your money in the beginning of 2003 Europe 213%.
It's just in the vanguard total market and can I have the cockpit.
Let's move on to a different topic here for a second which you were already getting to right which -- his idea and that about six weeks I think the FCC is gonna say hey.
Hedge funds can advertise to everybody in the world and a lot of people who do what I do who -- you know personal.
Investors people who are small investors are saying -- it's terrible -- it's not terrible these people are horrible at what they do they are -- Kill -- -- Qatar's story today in Bloomberg business week laid it out.
I mean and it's pretty obvious.
They charging these hedge funds charge it anywhere between 2% went to present management -- 20% of the profits -- are taught your -- -- it's 3% at 50% and what are they returning.
They are not returning the -- -- and achieved what can I thought that was a brilliant article -- -- finally we also around say how brilliant these hedge fund guys are.
They're not they're not.
Between what you don't compete what do we is that I my index and you beat them warm welcome back going right now -- SharePoint the index likely.
-- it -- what was the better investment over the last.
Two years the last year my point is I should be able to play in the market -- by individual stocks and not to worry.
About -- was -- or what apps I should be able to I should be able to play in the NBA.
Now we should I should know I should -- -- -- I know I should.
I don't think it's -- collection via it'll be way should be -- group that's right.
And -- -- should you be able to play I disagree with you until I appreciate analogy -- why -- why are you just don't know and -- don't -- would be open to everybody legal effort by -- vacation you device on the open that you don't buy stock.
You guys what do you just don't have.
And I'm -- I'm with -- -- I think that paid big big market should be regulated it is the extent where everybody has a fair it has sort.
Now -- information as well I think there's two different issues is -- information edge you're right we'll always be there for the -- and I would always say don't go up against them but I don't think there's not a technological.
Which they do well if you want to be an average investor and you wanna you wanna go up against these high frequency trading.
You don't go to get an MB AB -- high frequency traders that that would be why I think though the.
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