Stocko the only thing Shaw stockbrokers knows how to do is draw brokerage on trades.
For that matter, most broking firms have put in a dismal effort of late. It would appear that like the average punter, their "educated advice" relies heavily on it being a bull market.
With all the regulatory requirements and the standard "it's a highly speculative stock, we can't comment" advice, all they seem to do these days is put forward more useless information.
The new comers to the likes of JB Were are further hampered by limits on their trading activities. Meaning they continue to put forward old "text book theories" that can by no means remain up-to-date with something as dynamic as the stock market.
The brokers should all be grateful that the toothless tiger continues to allow them to make arbitrage profits by breaching ASIC regulations. Soro's inside trading conviction in France is testament to the fact the market is as clean as the Sewers Canal. Sometimes you wonder if it would be better to have less stringent regulation (that you knew was being enforced) than the current sham that leaves you with little clue as to where you actually stand.
In the current environment despite the best of intentions, it is the small players that keeps getting ripped off. ASIC has created an environment where the well informed/networked high flyers can exploit the little guy for a longer period than they might have. Surely it would be better if insider info was allowed to disseminate. At least that way the little guy although still receiving delayed info, would receive it earlier than the current position. The big players of course receive it first and rightly so, but currently the average Joe receives it after ASX announcement plus some. I reckon it would be better if we stop pretending life is fair. This ain't bloody Utopia and as long as we pretend it is, we create a even more naïve and vulnerable mum and dad market. ASIC is an unknowing pawn in the big boys game and should be dismantled and replaced with something far simpler and realistic..
The fact is the regulations just serve to further distort the information that inevitably get's through resulting in misinformation and deceit ruling the day. It's like trying to regulate drugs. Criminals profit, the Govt profits and reserves the right to be viewed as the "good guy" and the small guys get's screwed either through price or rat poison.
Cut the facade. The ASIC should be held accountable. If you can't regulate it, don't legislate it. Perhaps a random audit approach would be better than this "examine everything mentality". They have got bogged down in the detail and can no longer see the sh$#t from the flies. The criminals have recognised this and rightly exploited it.
Brokers should be held accountable for their trades and their performance. The likes of Macquarie should be thoroughly investigated, I would like to see a full review of 2002. The fact is nothing will be done.
Thus Stocko as far as I'm concerned, Brokers are as useful as the glossy cover of an annual report, although perhaps that isn't fair (the cover can serve as a coaster as well).
My advice: No comfort or advice should be taken from brokers, Asic or any other investor without exposing it to an appropriate level of skepticism in the current climate. When will the empire crumble?
