Selling books can be a tough business.
Michael Lewis is famous for his books about the financial industry such as Liar’s Poker and The Big Short as well beautifully written stories like The Blind Side and Moneyball. He is an engaging person who has proven time and again he has great insights into human nature and the world of finance. This time is no different. Sunday night on 60 minutes he shared in detail some of the intricacies of how High Frequency Traders (HFTs) execute their trades. While the information was correct, the conclusions were not on point. To suggest the U.S. stock market is rigged due to HFTs is extreme and inaccurate. Further to suggest that it affects all players equally is also inaccurate. While there were no “untruths” in what was discussed the implications and “the rest of the story” were overlooked.
I find Michael Lewis an entertaining writer and terrific at taking complex market events and “de-complicating” them so as to be understandable to all who read his works. I am sure his new book Flash Boys, a Wall Street Revol is no different. I look forward to reading his book despite the inaccurate conclusions he draws.
All comments and questions are welcomed.
Denise Farkas, CFA