There is growing talk that high-frequency trading techniques played a key role in the Flash Crash back in May. This incident is but one of many examples of where the seeming benefits of liquidity proved to be illusory. An interesting piece asks whether the rapid acceleration in trading has made markets more impatient and by extension dysfunctional. In that light it should not be surprising that dividend-focused investing has lost favor over the past few decades. In today’s screencast we ask whether dividends poised for a comeback?
Posts mentioned in the above screencast:
Was quote stuffing a cause of the Flash Crash? (DailyFinance)
An impatient market is not a happy market. (FT Alphaville)
Equity investors: dividends matter. (Economist)
Looking for a demographic dividend. (Psy-Fi Blog)
Daily chart of the iShares Dow Jones Select Dividend ETF (DVY). (Finviz)