MACHINES VS.BRAINS – AH THAT IS THE DISRUPTION
When I left Wallstreet in the 1980’s – the disruption hand writing was on the wall. I screamed about it to no one listening. Much as I do today about shorting ETF’s and the Super Short fortunes made by those who time that all right. Makes the 2008 SUPER SHORT look like child’s play by comparison.
This month 400 Billion has moved into ETC.
This year 250 billion has moved out of USA managed funds and 250 billion in the EU managed funds. Why?
Because 85% of them under performed the market of direct investing.
Investors are moving to passive computer money management and away from managed funds. But at WHAT RISK?
Managed funds are highly regulated. The cost of regulation is off set by the lowerin for over all risk.
ETF markeets are new are digital and are cloud trades outside regulation as we have known it. These new frontier investments can have enormous liequity crises in future market SUPER CRASHES that in fact they might cause – according to both the IMF and WORLD BANK in multiple warnns this year alone. To no one listening obiously.
Managed funds from Blackrock to PIMCO laid off staff this year. We predict a crises in DOWN SIZING in managed funds is taking place. A RUN ON FUNDS.
OUT to computer index investing by computer software.
AT WHAT RISK.
We like managers in times of crises over computers.
It may be a question of WHO LOSES LESS VERSUS WHO MAKES MOST PROFIT short term.
Profits can be wiped out in lose. Fast.
New unregulated or old tried and proven regulated?
Each must answer for themselves.
If funds like Blackrock with 50 Billion under management are half the portfolio in high risk ETF assets what is their real loss exposure in SUPER CRASH? We don’t think the SUPER FUNDS know the answer really. That is an alarm bell as we saw in 2008 only larger louder harder ringing.
So…the largest distintermediation of assets in history is taking place moving from LOW risk to HIGHEST RISK to accomoddate near term greed. Because the regulation lacks global uniformity – the RISK is not disclosed sufficeintly ( in our opinion ) to either professionals or to investors of all levels of play.
Invest at your own risk.
Buy low sell high.
That is the only rule.
Perhaps today if all roads to wealth statistically are founded on ONE ASSET CLASS – OWNING YOUR “OWN” BUSINESS – Now might be the time to direct invetments into your own business growth. That might be your safe harbor.
Invest in business.
That might be your best risk best.
Today you are inside the largest financial rip tide of all adult life times. This is a financial economic expeirment without any prior history or rules. No one knows the outcome. NO ONE. Having so many decades inside the core financial market space – it is my opinion – the RISK ELEVATION is becoming crazy.
What we need world wide is a new global regulatory frame work.
With that – we may have peace and prosperity return. Without it the historic data on my blog is a fair sign post of what is likely to come in the increasing SUPER VOLATILITY SUPER CHANGE AND CASINO MARKET PLACE OF “INSTABLITITY”.
Scroll and read my Blogs about CEO SPACE next week.
You should register and come to secure your forward prosperity.
Berny Dohrmann – Keeping the light on just for you – all eyes on ETF’s I should suggest.— July 19, 2016