Schwab Declares Economy Finds Footing

Schwab (SCHW) declared the economy has stabilized. In the latest earnings release Chairman Charles Schwab has declared “The economy is starting to find its footing, and short term interest rates have either stabilized or improved.” That’s good news Chuck. Have you looked at any of the macro’s lately. Solid footing is not the signal anyone else is reading.

CEO Walt Bettinger said, We also reduced the management fees on our proprietary ETFs so that clients can utilize their unique combination of professional management, diversification and transparent pricing with both the lowest expense ratios in the industry and commission-free online trading.

ETF’s are measured by efficiency and correlation to an underlying index. It sounds like Walt is making the point that Schwab’s stuff is special. If it’s special why do you have to lower management fees. The answer is to be competitive with similar product offerings.

Hard to have confidence with the two senior guys talking through their hat.

Disclosure: No position in any stocks mentioned in this post.