Posted by on May 28, 2018 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Christophe Vorlet

 

By Jason Zweig |  May 25, 2018 12:09 pm ET

 

The financial-deregulation bill passed by the U.S. Congress this week is the latest phase in the eternal tug-of-war between regulators and banks. As fast as governments impose limits on the financial industry, banks, brokers and other firms fight back.

It’s been happening for millennia, and it probably will keep happening until the end of time. To invest in financial stocks, investors need to understand this cycle and where we are in it at any given point in time.

Proponents of regulation and deregulation alike tend to underestimate how soon and how far the pendulum will swoop in the opposite direction.…

 

To read the rest of the column: 

The Wall Street Journal, https://blogs.wsj.com/moneybeat/2018/05/25/banks-won-big-in-washington-what-it-means-for-investors/

 

 

 

For further reading:

Books:

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Devil’s Financial Dictionary

Benjamin Graham, The Intelligent Investor

Jason Zweig, The Little Book of Safe Money

 

 

Articles:

 

A Short History of Folly

Adviser Duties: While Regulators Fiddle, Don’t Get Burned

The Museum of Art and Finance, Gallery 1: Tulipmania