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March 3, 2024

Financials Matter

"It's Not Just About Finance"

How the PPT Meets its Waterloo

In case you haven’t heard the term PPT, it stands for “Plunge Protection Team.”

Here’s a very brief description:  It was created by the Reagan administration after the crash of 1987 to prevent another market crash.

Their main purpose is to buy like crazy when the markets are threatened, and, except for the housing meltdown 2007-2009, they’ve been very effective.

Read more about it in our archives (HERE).

Since March of 2009, the PPT has quietly dominated market movements.  However, just like Napoleon, they will eventually meet their Waterloo…and you won’t see it coming.

You will, however, feel the crushing impact on your net worth.

You see, unlike trading in the old days, you don’t stand a chance of competing in the world of High Frequency Trading (HFT’s) computer Algorithms (ALGO’s).

Here’s why:  The HFT’s have bribed the exchanges so that their own servers can be co-located in the same building as the stock exchange servers.  This allows their traders to receive information from the New York Stock Exchange at a fraction of a millisecond before anyone else.

In that fraction the HFT’s computers can process information and place trades ahead of the crowd.  They can enter and exit a trade in just a fraction of a millisecond.

Can you compete against that?

Hardly.

These computers are not interested in the fundamentals of a business.  They’re only concerned about the volume and momentum of a stock.

So, how do you know when to get out before it all comes crashing down?

Simple.  Learn how to “connect the dots” of the global financial puzzle (HERE).

When the PPT meets its Waterloo, you need to be as far away as possible.

Read more about it in our December issue of Simplifying Wall Street…in Plain English.”  (HERE)

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