337 karma · joined September 22, 2013
avery [at] gitblame [dot] me
For many years, I've wanted to try being vegetarian as a way to reduce my environmental impact. To me, meat substitutes are the last missing piece in the puzzle, the piece that shows that its possible to consume staples like hamburgers or spaghetti and meatballs.
Not all of the meat substitutes are good. Not all of them have to be. But a more sustainable future, where meat (and especially seafood) are cultivated in a way that has a less harmful impact on the environment, is a future that I want to help facilitate.
Much of the concern in markets right now seems to stem from the idea that as the Federal Reserve tightens credit, both through raising interest rates and through unwinding its previous QE programs, there will be a significant impact on companies that have borrowed at lower interest rates. Debt that is going to come due in the next few years is going to have to be refinanced, or is going to default.
If you're a country which borrowed in dollars, the tightening of US monetary policy will often lead to a change in exchange rates that makes it more expensive to pay back debt. Coupled with a global economic slowdown resulting from a trade war, and things start to look nasty wherever you look.
- I want to complete my CS degree, get a post-graduation work permit (I am a US citizen going to school in Canada), and find a full time job
- I'd like to learn to deal with my anxiety better. I have a diagnosed disorder, and lately it has made it incredibly difficult to enjoy doing things outside of my comfort zone. I often have problems eating and socializing, and I would like to start seeing a therapist and develop coping skills to deal with the shit that goes on in my mind.
I think this situation is much more difficult to find and enforce, however. As an executive, you have to file with the SEC for share purchases (I believe its either a certain number of shares or a certain $ amount bought/sold. I also believe the form is form 4)
So it becomes a matter of figuring out when the senior exec knew the information and traded on it, and I think its a bit more difficult to enforce because its not your typical insider case.
I like your example, because it really hits at the edges of what is material non-public information.
Something that just occurred to me: if you are a senior exec, your compensation is probably tied to share ownership in $ME. Even if you trade on $THEM, and make money, you're probably going to take a pretty substantial hit on your own $ME holdings. This isn't to say its any less fraudulent/misleading, but its an interesting thing to consider.
I wish I had a better answer to this scenario.
When it comes to insider trading, it really seems to boil down to: did I obtain the information in a way where no outsider would have possibly done so? With your example, it certainly seems possible that other groups could perform the same analysis. So as you said, it wouldn't be insider trading.
I think another one of the aspects of insider trading is _certainty_. If you're an insider, and you know your company is going to miss earnings, the likelihood of you making a wrong bet are near 0. If you're analyzing imagery of parking lots to see if sales at Wal-Mart are going up, theres still a non-insignificant chance that you could bet wrong. Maybe the reason theres so many cars it that they are running promotions that actually don't increase revenues in an expected way. Maybe there aren't any cars because people are taking public transit. When you're an outsider, theres way more variables that go into your trade, compared to when you're an insider and its a simple question of "how will this information about my company get reacted to?"
Insider trading is probably one of the most interesting aspects of modern finance. As you can probably tell, I take most of my information from Matt Levine (he gets linked here pretty often, but his column is Money Stuff on Bloomberg (also an email newsletter so you don't use up your free articles))
Again, not an expert, take everything I say with a healthy pinch of salt.
Insider trading applies to instances where you have _material, non-public_ information about a company. The criteria of what makes information material and non-public are a little bit of a gray area, but I'm going to just use it to mean "I know something about a company because I am in a position to be trusted by that company"
In other words, your example wouldn't be insider trading. You have no material, non-public information about correlated stocks or a competitors stock. You have a hunch that that stock will perform in a way related to the stock you have information on. AFAIK, theres nothing stopping you from acting on that hunch.
So of the 3 options presented, its probably a mixture between 1 and 3, leaning towards 1.
The ETFs just build on top of the index. In almost every prospectus, there is some kind of note about which index it is. You can go look at how the index is arranged, and there are sometimes multiple funds that track indices in the same sectors, with different weights. If you're not happy with the amount of Berkshire in your financials ETF, you can go find a fund which uses a different index and buy that instead.
If anything, a stock market index is _more_ valuable in a digital world, because it effectively adds a layer of abstraction to the typical notion of investing.
[0] https://www.ft.com/content/9ad80998-fed5-11e7-9650-9c0ad2d7c...
I also use a reusable bag for most my grocery shopping. I know a number of people who use cloth bags.
I do know there are programs which seek to collect plastic bags and recycle them, but I've never actually looked into what they are being used for.
If you feel like your contribution of recycling grocery store bags is meaningful, I don't think you should stop.
Of course, with stocks you have a much larger ability to measure your trust.
The SEC filings from every company before their IPO contains more than enough data to evaluate their standings as a business, and are publicly viewable. There's a reason people know things, it's not all magic.
I will agree though that the relationship between me and my doctor should be a two-way one. I am completely open with my doctor and make it known what i expect out of them, and they are the same with me.