Posted by on Feb 22, 2020 in Articles & Advice, Blog, Books, Columns, Featured |

Image Credit: John Vachon, Produce delivery to supermarket in Montgomery, Alabama (1943), Library of Congress

 

 

By Jason Zweig | Feb. 21, 2020 11:00 am ET

 

Morgan Stanley’s takeover of E*Trade Financial Corp. for $13 billion shows how drastically the brokerage industry’s business model has changed.

Firms no longer want to offer investment products from all sources. Instead, they want to milk their customers’ cash and manage all the assets themselves. Investors need to understand the rules of the new game.

For decades, big banks and brokers aspired to become “financial supermarkets” where consumers could open bank accounts and buy stocks and bonds, mutual funds, insurance and the like.

 

To read the rest of the column:

https://www.wsj.com/articles/what-the-e-trade-deal-tells-you-about-the-new-investing-game-11582300803

 

For further reading:

Books:

Benjamin Graham, The Intelligent Investor

Jason Zweig,The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money

 

Articles and other resources:

Your Stock Trades Go Free but Your Cash Is in Chains

How Apple’s Fall Bit Bondholders, Too

Talk Is Cheap: Automation Takes Aim at Financial Advisers—and Their Fees