A major Wall Street firm is offering investors a way to profit from the dramatic fall in stocks in the wake of a major stock market collapse.
J.D. Stock Inc., a trading service for stocks traded by major investment banks, is launching a new tool that lets users bet on the market’s direction through a “joint feed” that tracks the Dow Jones Industrial Average.
The Dow Jones is the stock index that tracks many of the largest U.S. companies.
The feed will be available on the J.T. Barnard index site.
The service is one of the first steps in a wider effort by Wall Street firms to offer investors a more diversified portfolio, as investors seek out low-cost alternatives to the likes of Vanguard, BlackRock, and other high-cost index funds.
The J.P. Morgan, Goldman Sachs, and UBS investment banks are also joining the joint feed, with J.J. Watt, a brokerage firm, taking the lead.
The joint feed will work on an hourly basis, allowing investors to trade stocks on an ad hoc basis.
The Feed will not include any proprietary information or trade data that could harm your financial interest, the firm said.
The tool will not provide financial advice, but will be used to help traders make informed trading decisions.
Investors who want to get a handle on the direction of the Dow can enter a price range for a particular stock and then see how it has performed.
Investors can also see how stocks have fared over the past year, and how the Dow is currently performing.
The index tracks the performance of the companies listed on its website, and many of its companies have had their stock prices fall.
Investors with access to the feed will see a list of stocks that have gained over the year.
The firm said the feed does not provide a list or buy-sell signals that are a violation of securities laws, and that the feed is designed to allow investors to “follow the market as it moves.”
A Wall Street analyst said that investors are getting a mixed message on the Joint Feed.
“You are getting mixed messages from investors who want more diversification and are hoping that it will help them make more informed decisions,” said Peter Zimroth, chief investment officer at UBS Asset Management.
The broker said the JBIS feed is a “good way to hedge against a market crash and that there will be a return on diversification.”
The Feed has attracted interest from a number of Wall Street analysts, including Robert Shiller, an investment manager at Lazard, who said he has “frequently” used it in his investment work.
He added that he is “surprised” by the lack of disclosure on the feed.
“There are a lot of things that I don’t understand about how the feeds work, especially how the feed has evolved,” Shiller said.
A separate broker, Wachovia, is also using the feed to trade in U.K. shares, with some of its traders also joining in on the action.
“I think that we are seeing a lot more of the traditional, institutional investors looking at ETFs and the JT Barnard feed,” Shuster said.
Investors have become increasingly interested in the feed as the stock-market rout continues.
In the last month, the Dow has lost more than 80 percent of its value, and in December, it plunged more than 70 percent.
The S&P 500 index fell more than 5 percent over the same period.
The last time the Dow dipped below 20,000, it was in September 2015.
The stock market has been in freefall since late November, as a number market-watchers have warned that stocks are headed for a “recession.”
Dow futures fell by more than 25 percent on Thursday to trade at 21,200, and the S&P 500 fell nearly 13 percent to a record low.
The Nasdaq composite fell 1.8 percent, and Standard & Poor’s 500 index sank more than 1 percent.
“The market is in a very volatile situation and there is a lot going on,” said Brian Blau, chief market strategist at Morgan Stanley.
“People are starting to get concerned that the economy may be slowing down.”
The Dow is down about 20 percent this year, as the economy has been on the mend and the Federal Reserve has signaled that it may ease monetary policy.
On Thursday, the Federal Deposit Insurance Corp. (FDIC) reported that it expects the Dow to drop further on Friday.
The agency said the Dow will fall about 20 points on Friday, from its current 52,000 mark, from a level of 52,400 on Thursday.
On Friday, the S &, P &.; Dow futures will fall by more, from their current level of 24,500 to 25,600.