Making the rounds in the news today is this video:
There’s some controversy regarding whether or not this man is a real “independent trader” or a hoaxer, but that’s not the interesting part. I’m amused by the reaction of the BBC interviewer: “jaws have collectively dropped at what you’ve just said.” That’s a little odd considering that nothing he said was particularly revelatory or controversial. Perhaps they’re surprised that any investment professional would have the temerity to admit such things on TV. Most of the time what you hear from people in nice suits from the financial world is the story of how the stock market will make us all wealthy and we must just stay the course until it all works out. But I’ve already discussed on this blog how that is a fiction, since the market is zero sum and the only way one investor makes a gain is at the cost of another investor. So of course when markets fall, someone is making money. The people making money are like this guy, or at least the people this guy is pretending to be.