I HATE ETF’S – IMF WARNS THEY COULD WRECK THE SYSTEM
I’ve told you and I’ve told you there is no class of assets with risk-less risk. not Diamonds ( I sold billion’s of them – the market crashed in the 1980’s ) not Gold – not Real Estate – not anything – there IS NO DISKLESS RISK.
So Blackrock with north of 4 Trillion under management, larger wealth than most sovereign nations – has about half in ETF or related investing off shore. Is there performance subject to a SUPER CRASH may be at risk for loss of half of that wealth? They don’t think their is any one but “nuts” running around saying the SKY IS FALLING. I’m one of the “nuts”.
Blackjack could not be reached to give a comment. However they would confirm I’m one of the nuts and “we” as economists and investment bankers” don’t have a clue nor does the IMF or WORLD BANK. Only they in their gilded tours of wealth understand what is really going on out there. I submit they have no clue and are about to destroy oceans of wealth for the world in their market manipulations. Folks these super funds could have invested in larger ways in constructive good concentrating investing in economic building of nations – development – in real estate factories and industry to create jobs as the largest % but NO – they concentrate half in ETF hedging side bet markets to make greedy short term profits at the risk that will soon be beyond their formulation to manage. WATCH and SEE if the nut who has been right since 1988 is right again. I’ve had a long run of being right – and on this I hope Blackrock is right and that I’m wrong – what a pleasure to be wrong on this one where the outcome is world war.
I’ve told you about contagion events in the financial system, events that create real global financial panic and SUPER CRASH. Keep your eyes on Venezuela. I believe Venezuela’s default on billions upon billions in bond debt, is close, and will be worse for the market than ARGENTINA when its banks CLOSED. Not that long ago. There are ripples upon ripples coming. The ETF market will have see redemptions and outflows rise in panic with no buyers and the liquidity in the ETF market will ratchet to negative. The price of this class of assets will be destroyed due to lake of oversight regulatory process G 100 regulator frame work – and frankly a raw speculation class of assets to do nothing but manipulate market value creating no value of its own. A WORTHLESS construction like all structured assets which should be illegal and criminals selling them should be put in prison. But I’m the nut running around telling you the SKY “IS” FALLING – keep that in mind when your hit by a chunk of cloud.
Meanwhile MSCI – THE ETF PROMISING to be the “fund OF funds” ( Didn’t Barny Cornfield go to prison for doing THAT ) such that the MINIMUM VOLATILITY FUND has sucked i 13 billion under management in shortest time frame. Investors like you put in over ONE BILLION a month every month this year alone. And that rate is rising. They all seek risk-less risk. The ETF “of'” the ETF’s will give that to you. Folks, has any one studied financial history so you do NOT REPEAT the mistakes? I have? Is it only economists who warn of this asset class as a mistake? Meanwhile fools can not be deprived of their joy to be giving their money to other fools. It is a fools market space. I’m watching from the INSURANCE side line. The only class of assets I see as safe harbor in the coming financial destruction.
I don’t think so. There is no such economic reality. In fact the risk in the ETF market is so large and growing faster than any other market on earth – the heads of the World Bank and the IMF have cautioned these fully unregulated markets, can and may be the WEAPONS OF MASS DESTRUCTION that destroy the ENTIRE GLOBAL FINANCIAL SYSTEM.
Who is heeding these warnings?
Who is reading my blog?
Who is taking action to build your own safe harbor.
Folks your SAFE HARBOR is the one and the only thing that will save you from your witness to financial history repeating itself – SUPER CRASH – DEPRESSION – WORLD WAR. Can that be prevented.-
Only through INSPIRED LEADERSHIP. Are you seeing that some where?
No one else will save you. Here is my important tip of your weekend.
Berny Dohrmann – we’ll keep a light on for you – MSCI is in for a rude market reality check in our opinion as are all the fools that chose to go risk-less RISK….humbug.