Short Takes: Dark Pools, Technical Analysis, and Flat Tax

1. Jason Zweig wades into the dark pools where hedge funds trade large share volumes at lightning speed. How can the little guy hope to compete with these shadowy figures that purportedly trade on inside information? The answer turns out to be by trading very infrequently.

2. Larry Swedroe reports on a new study finding that technical analysis is a waste of time.

3. Larry MacDonald published ideas from two proponents of a flat-tax system. Unfortunately, I can’t make the numbers add up. It seems that the government would be pulling in significantly less tax money with either plan. If that’s what these flat tax advocates have in mind, then they need to explain how we will do away with big chunks of government spending.

4. Canadian Financial DIY has opinions about the new ability for Canadian retail investors to trade in Contracts For Difference (CFDs). Buyers beware. Remember that whenever you enter into a financial transaction where you don’t fully understand what you’re buying, there is a good chance that it won’t end well for you.

5. Preet wonders what the point is of having an ETF with only a few holdings when it can be cheaper to just buy the individual holdings yourself.

6. Big Cajun Man explains why debt is like fat.