In light of Raj's conviction yesterday, here is an interesting interview with Barry Ritholtz of Fusion IQ about how prevalent insider trading is and whether or not the average investor can get a fair shake in today's market. Ritholtz believes true insider information is far less common than we're led to believe, but that doesn't mean the average Joe can make money in the market, either. He compares the market to a casino, with the odds stacked ridiculously against investors. But he also shares some of the valuation techniques of hedge fund manager like himself which help them think outside the box. Good stuff:
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Hey Eddie, what are your views on the illegality of inside trader?
Of course he's gonna say that market is rigged. He's a hedge fund manager and wants you to leave the investing up to him. If he tells you it's easy and anybody can do it, then why would you pay him? While I would agree the odds are stacked against you, I and many others I know have been profitable investing in the stock market.
I am not adding content or deep analysis however, here is Raj's attorney flicking off a cameraman (about 40 seconds in)
http://video.cnbc.com/gallery/?video=3000021512
When they talk about "average investors" they must be speaking about professionals who invest for firms. The average investor would have all of zero access to a company's inside management.
Insider trading, algorithms fighting... WHAT NEXT http://io9.com/5800577/the-stock-market-depends-on-how-algorithms-are-i…
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