On September 17, 2007, Capital Flow Watch called the top of the Buyback Bubble, issuing a warning that stock prices might be in for a sharp fall. Unfortunately, that comment turned out to be correct. The outlook considered two simple facts: Stock prices are supported by equity buybacks, which, in turn, now […]

It is always somewhat foolish to attempt to call the top of a bull market or the precise moment when a speculative bubble pops, but sometimes its better to be foolish than sorry. During the ides of July 2007, when the Dow Jones Industrial Average was gently massaging 14,000, signs appeared that air was finally beginning […]

Over the last twenty years, stock exchanges have morphed into a new type of institution: the ‘demutualized exchange’. The position and power of stockbrokers — once the ‘masters of the investment universe’ — has been significantly lessened. “Demutualization” is the process by which a stock exchange is transformed from the traditional configuration of a broker-owned, […]