Perfect Storm for Broker-Dealers

Published on
September 10th, 2018
13 minutes

Perfect Storm for Broker-Dealers

Trade Ideas ·
Featuring Michael Block

Published on: September 10th, 2018 • Duration: 13 minutes

Michael Block, managing director at Third Seven Advisors, reviews how and why broker-dealers are under fire. He explores the impact of passive investing on the sector and discusses how the potential impact of a flattening yield curve could be devastating. Michael discusses the best way to play the trend in this interview with Brian Price. Filmed on September 4, 2018.


  • my
    markettaker y.
    27 September 2018 @ 00:59
    Dude should be able to afford shirts and jackets that fit him. Also, let's hear from the guy's friends rather than him. Kind of annoying.
  • MC
    Matthew C.
    14 September 2018 @ 00:00
    Well thought out trade idea and something quite different from what we usually see. Obviously all the negative comments are killing it with their own ideas if they think this one was not worth listening to. BTW if you decide on whether a video is good or bad based on your liking for the person, you are missing out.
  • VS
    Victor S. | Contributor
    12 September 2018 @ 19:09
    Mike has a lot of confidence but where’s the beef ? Nothing i learned to make any money? His pick is a 50/50 bet it seems?
  • AB
    Andrew B.
    12 September 2018 @ 10:34
    A short term trade - maybe. But risk of a blow up is plenty high cf Feb 2018 VIRT up 80% real quick.
  • CM
    Christopher M.
    10 September 2018 @ 12:58
    Could have been much shorter, cut the "look how many people I know and I'm doing all these things I can't talk about". RV they can't all be perfect you have set such a high standard.
    • RA
      Richard A.
      12 September 2018 @ 10:14
      In both his recent interviews he was smarmy like the worst used car salesmen, and arrogant, but without the successful #timestamped record that “might” allow you to get passed that.
    • RA
      Richard A.
      12 September 2018 @ 10:17
      Past lol. So much for my grammar track record. And thought I was replying to the following message. #notgifted
  • NC
    Nick C.
    10 September 2018 @ 12:02
    Worst interview I have seen in my 2 years at RV, arrogant and very little substance behind views. Do not get this guy back
    • JC
      Jason C.
      12 September 2018 @ 01:38
  • JM
    Jay M.
    11 September 2018 @ 17:37
    He said it best himself, "there is no catalyst" - I get his view, but then I thought voice broking at IBDs in Govies was going to die 20 years ago and I was wrong. One commentator here stated correctly that during the next crisis, this business will come back again, cause the Algos get shut off. No trade structure, no catalyst.
  • EF
    Eric F.
    11 September 2018 @ 17:16
    Mmmm... definitely seen a shift to passive and maybe he’s right for nearer a 4 month timeframe. I think though that come the next meltdown we see the shift back to active. So, I think he’s right short-term but wrong long-term.
  • JQ
    Joseph Q.
    11 September 2018 @ 02:47
    This Guy sucks. Volume and Volatility will come back with Debt crisis coming in 2019. Think the democrats approve debt increase for trump. Haha
    • MB
      Michael B.
      11 September 2018 @ 13:58
      Let me guess... your trade rec is to buy an Ether ETF.
  • RO
    Robert O.
    11 September 2018 @ 03:40
    Michael's belief that XBD will continue to fall is consistent with his thesis that passive investing will continue for the foreseeable future, but if markets become unstable again and Macro investing regains popularity then his short XBD recommendation would likely fail. I don't see any added value in this trade over just being long the major US indexes.
  • WP
    Warren P.
    10 September 2018 @ 18:36
    Seems like Michael only knows a lot of smart people. RV should get those people to share their views and not some guy "parroting" someone else's view.
    • BP
      Brian P. | Real Vision
      10 September 2018 @ 23:40
      Hater alert.
  • CT
    Christopher T.
    10 September 2018 @ 19:34
    love this guy
  • DS
    David S.
    10 September 2018 @ 18:00
    As an aside, I still think that the administration is using tariffs in lieu of border taxes to generate much needed revenue. Today they are looking at tariffs on Japanese cars per an article in CNBC. This is surprising since many Japanese cars are made in the US and Japan does not have tariffs on auto imports. I do not know content of Japanese imports by country. It is possible there is a lot of Chinese content in Japanese cars. Maybe the administration is trying to help Ford and GM. I hope that someone is really looking at this closely to make sure we do not start a trade war with Japan also. Does anyone know a good objective source on this? DLS
  • DS
    David S.
    10 September 2018 @ 17:43
    Information comes in many forms and style. If there are nuggets, it is up to the listener to gain from the conversation. There is solid information here, just said in a different style. Trade background sounds good, but $300 sounds high. I still would like to know portfolio percentage, sizing, scaling, skin in the game, recommendation to clients, etc. to get a feel for the seriousness of the trade. DLS
  • NG
    Nick G.
    10 September 2018 @ 17:37
    You might not like the guy's style (he is not everyone's cup of tea) but he has given you by far the best trading idea of this whole series.
  • MG
    Mohamed G.
    10 September 2018 @ 13:37
    Not sure why you folk are so negative on this interview. I completely agree with Michaels outlook on dealer spreads, industry changes and opportunities going forward in private equity/HF space. Don’t hate the messenger if you’re not clued into the what. Thank you RV please bring Michael on more often.
    • BP
      Brian P. | Real Vision
      10 September 2018 @ 14:26
      Thanks, Mohamed. You got it! He will be back!
  • SS
    Sam S.
    10 September 2018 @ 13:00
    I really enjoyed his rapid fire mind working at hyper speed responses, but unless one plays in his world, hard to put the narrative together. Maybe in the future he might be willing to explain his macro view with a step down discussion for better understanding. I do wish to hear and understand a lot more.