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Message: A pastor, a doctor and a stockbroker....

One of my father's favorite jokes was about the three aforementioned characters...a pastor, doctor and a stockbroker. 

The three were fishing off a reef when their boat drifted too close to the coral and the hull was pierced and quickly began taking on water.  About 100 yards off the stern was an island, a sandy atoll....but the water between the island and the sinking boat was teeming with sharkes, great whites, tigers and bulls.  

The fishing boat had a small lifeboat, but it had a warning in large bold lettering that said the maximum load was 600 pounds.  The three gentleman were all big men, they calculated their total weight at just over 800 lbs.  One would have to swim for it and take his chances.  The doctor was the oldest, and he said he'd taken a Hippocratic oath to serve mankind.  The pastor argued that he was a man of God and that Jesus would send down angels to protect him, the doctor would have none of it, the pastor was young and had a long life ahead of him.  

The pastor and doctor argued vehemently back and forth, and then all of a sudden they heard a loud splash.  They looked off the stern of the boat and were amazed to see the stock broker doing a nice leisurely breast stroke to the island.  Even more incredible was the behavior of the sharks, not only did they not attack the stockbroker....they actually created a lane for him so that he was swimming directly between a line of dorsal fins on both his left and right.

The doctor and pastor clambored into the lifeboat and made for the island, but their progress was impeded by the sharks.  The sharks started attacking the tiny lifeboat and only by furious paddling and using the oars to fend off the sharks did they finally reach the island safely.

Once safely on dry land they ran to the stockbroker and asked him how it was that he was able to swim safely through the sharks, how they left a clear path for him.  The stockbroker leaned against a palm tree, slid down to a seated position and spread his arms and said:  "Haven't you ever heard of professional courtesy"???

There is a point to this joke, and it relates specifically to the discussion going on about the "seeming lack of interest".

In very broad terms I believe that investors can be divided into two very simple and basic categories: Those who employ the services of a full time stockbroker, and those who don't.  In one camp you have individuals who pay higher fees for the services and advice of a professional, while in the other are DIY types who use discount brokerages.  

In terms of numbers I believe there are likely more discount broker DIY types, but in terms of dollars I think those who employ full time brokers have more money in play cumulatively.

And I think this dynamic has a lot to do with the pathetic volumes we've been seeing.  While there may be a few DIY types tossing a few bucks at RVX/RVXCF, I would bet that most aren't buying more than a few thousand at most, and even just a few hundred at times. 

Its my view that those with deeper pockets, trying to establish positions of 10K shares and more...that these are the types most likely to be employign a full service professional broker....and that imo presents a problem, because I don't believe a professional broker is going to slam MMs with a simple market order....

Its a messy and dirty market to my eyes....here's yet another article that speaks to the games that go on:

https://www.investopedia.com/articles/financialcareers/06/mmakertricks.asp

  

 

 

 

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