The curse of ETFs in a downturn has long been predicted. RIP Jack Bogle. Selling begets selling, and down and down we go.
20K is on the horizon. It could correlate with proper valuation. The sooner someone get's their finger off the panic button, the better. AKUMA https://en.m.wikipedia.org/wiki/OyaGen
ETFs suffered only a few % in outflows of customer cash. Its the to the toes leveraged hedgefunds and banks who are selling like mad. There was an article on Bloomberg about it just yesterday.
Was watching a recent Joe Rogan podcast with MIchael Osterholm. Topic was about Coronavirus. Half way in podcast he’s discussing being straightforward with public about it and his briefing last Friday with about 400 major financial investors about the virus. He compared them to 6 year olds scared to go down a dark hallway after he was done explaining what to expect the next few months.
It´s always the same: the very same clowns at mutual funds and elsewhere use the very same "benchmarks" for their investment tracking and investment decisions. Once these benchmark´s "risk parameters" are being hit, managers are obliged by investment policies to dump their holdings whatever the "situation". I am laughing all the way to the bank how these lemmings are being run over by the "vola creators" - like volatility funds, RenTec & Co. They all deserve it - with their stupid talk how "passive" is outperforming "active"....Now, was that "active" enough or more vola needed???
Any actual proof of this occurring? Except for leveraged ETFs, institutional owners would have to be turning in ETF creation units for the underlying stock and selling that, which would be apparent in the shares outstanding numbers. I haven't seen any of that, but then I haven't looked beyond a couple of the big ETFs. Leveraged ETFs just don't have the numbers to move markets with rebalancing, especially when you look at they underlying securities they hold.
55 And the ETFs most likely will do better than mutual funds-those mutual fund buyers are among the worst panic sellers............................................................................
I love trading leveraged & inverse etfs, reminder sec is considering limiting our ability to trade them, they're taking comments til March 24, sound off, see proshares site at www.fundcomments.com I hope we'll be able to keep trading them, especially inverses. See https://www.sec.gov/rules/proposed/2019/34-87607.pdf