Twitter the New Discount Brokerage?

Scanning the Financial Post as I do most days, I came across this article published last Saturday, February 21, 2009 titled Twitter new source for stock tips, headaches for regulators: http://www.financialpost.com/news/story.html?id=1313295

For those of you who are not familiar with this tool, "Twitter a service for friends, family, and co–workers to communicate and stay connected through the exchange of quick, frequent answers to one simple question: What are you doing?" (twitter.com) Essentially, Twitter is a microblog allowing users to "tweet" up to 140 characters to friends, followers, etc... informing them about their daily events. 

The phenomenon of Twitter is giving rise to users providing services such as stock information. For example, services such as Piqqem and Stocktwits are offering investment expertise to all investors from basic knowledge to sophisticated investors. As investors continue to sit in limbo with their current advisors and portfolio options, more and more of them are turning to unconventional sources to gain information. To emotionally distressed investors, Twitter's ability to provide this information at no-charge comes as a godsend. Twitter is serving as a free means for investors to access advice for equities. 

However, securities regulators believe that there is cause for concern as Andy Poon, spokesman for the British Columbia Securities Commission explains (Financial post,2009) 

Twitter, which encourages users to attach themselves to others and follow their communication with a network of other users, could probe to be a useful tool for investors - or it could be the next new shiny penny [that] enables some of the bad guys to reach a lot more people a lot more quickly and at a lower cost. 

The anonymity of Twitter's users could prove to be a safe haven for 'pump and dump' stock promoters and other scams (Financial post,2009). But  with over 15,000 users using Stocktwits providing more than 3,000 unique tweets/day, Twitter could also prove to be a saviour to investors amidst the present market turmoil.

TSX Tumbles to New Low....

For those of us who have been opening their monthly investment statements be prepared to see a new low for the month of February. As if, the bottom of November 20th wasn't bad enough for the TSX. Today, we have seen a new bottom of 7647.67 basis points. 

This new bottom does not bode well for gains in the future. According to Adrian Mastracci of KCM Wealth Management in Vancouver, 

      Right now, I think there is a higher probability that markets will go down further than there is of them climbing higher because we still do not have a handle on all the problems that are out there. Stocks are driven by two things; confidence and earnings, and we don't have either.

Until investor confidence is restored the volatile ups and downs of the market will linger. 

Check out the Financial Post for more information

New Blog, New Life...

As we are 17 days into the New Year, I felt the need for this space to reflect my current situation in life. The New Year brings new endeavours and new commitments. As I am still searching for that perfect employment opportunity, I feel the need to express my addiction to the financial markets. 

To me, there is nothing more interesting that waking up in the morning and checking out Bloomberg or the Financial Post to see what the days markets are going to bring. Always a good indicator of the days markets is the DOW Futures or how the Asian markets have performed throughout the night. 

So, as I sit on the sideline gathering more and more information, I bring you this blog.  Please enjoy and refute any information that I present to be true as the only way to learn is become aware.