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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: QuietWon who wrote (19455)	3/11/1999 3:16:00 AM
From: Anthony@Pacific	Read Replies (1) \| Respond to of 122087

A CARD Carrying MEMBER OF THE NASD!!!!<----- Follows here!!! Posted by: TokyoJoe Subj: Thoughts..... Date: 3/10/99 9:34:05 PM Eastern Standard Time From: xxxx@pacifier.com (Hank Sowerwine) To: tokyomexx@aol.com (TokyoJoe) Mexx, Though you know me only as a faceless member of SA and occasional 'pain in the butt newbie', I feel compelled to share a few thoughts - especially in light of the current situation you face with the regulators. As you will see by my letter, I consider your very presence and impact both a 'positive and natural' step in the evolution in the world of securities investing. First as a disclaimer, you should know that I have been in the 'business' since 1971, am a 'card carrying member' of the NASD (though that will be changing soon). OK then, here goes..... When I decided to pursue Wall Street as a career, making money as an investor was a hobby of mine. I was fairly good at it, and being somewhat of a 'maverick' by nature, made money easily - and quite often on the 'short' side. Volume and volatility were relatively quite in those days, but I have wonderful memories of selling short MER just before the 'hold-back' period expired (one of Thomas Holt's best recs.). In those days, and till 1976, we 'brokers' were a different sort. The industry was easing into an age where many of the older guys, having done most of their business in 'bonds', and who could barely spell 'stock' were dying off - and creative things were beginning to happen. After a year or two of dealing with my 'naiveté', I had to come to grips with the fact that the top priority of the 'business' wasn't really about creating and preserving wealth, but rather 'how much GROSS' you could put on the books each month. You would have laughed to have seen the reaction I got from management (Kidder,Peabody) when I suggested that perhaps we ought to consider a system of charging our clients on the basis of 'results', rather than simply 'activity'..... LOL... what an idiotic idea !! Well, as time passed, '76 happened and the winds of competition and reality started to blow.... the rest is history as they say. Now a substantial portion of the revenue comes from 'management fees' in so called 'wrap accounts' .. fancy that. Well OK, then here comes the 'internet explosion' --- and along with our human nature tendency of wanting to be able to shop at 'wholesale' -- and bada boom!! The whole infrastructure (or at least some of the cornerstones anyway) of the old-boy network, feels a little shudder. I know of many of my clients and acquaintances who only a few years ago would have laughed at the idea of 'investing' from their PC's. But Wall Street hasn't been unaware.... Considering how 'change' is looked upon in general, especially by entrenched mainstreams, is it any wonder that the world of those who feel threatened by change will tend to strike out in desperation at the innovators? So along comes this guy named 'Tokyo Joe'..... determined opportunist and clever pickpocket? - or benevolent trade master guru, educator and guide? Well, in my humble opinion, the answer to that is clear -- what you have created is itself the answer.... which can be construed many ways (depending on how well the viewer can read of course !) To be challenged or attacked is in the most part simply a combination of what I have already mentioned, plus probable 'sour grapes' from some and competitive jealousy of others. In the spirit of 'full disclosure' which you advocate by both policy and example, your critics should be totally disarmed. Hold your chin firm, and know that your 'Darwinian role' is both appropriate and timely. And from a very personal point of view, also respected and appreciated. 'Damn the Torpedos' !! Very best regards, Hank (CaptnNemo)