WHAT ARE ETF’s:
Electronic Traded Funds are software controlled investments. They are structured assets. They are largely unregulated. There is none of the normal market clearing and regulated market controls in this space. It has been the largest runup of wealth in modern times. Electronic Traded funds are liquidity crises in the making under this new test category in word markets.
The 100’s of billions flowing in are a world systemic test. The WORLD BANK and IMF have said unregulated ETF new markets – structured assets like SUB PRIME MARKETS – seek to take money from higher priced MANAGED FUNDS with people and regulations over your money. They caution the market could SUPER CRASH because of ETF market abuse. A premium for the core asset when investing everyone forgets about – LIQUIDITY.
In 2008 and the crash years the then tiny ETF market broke down and zero LIQUIDITY. Sellers could not find buyers. Software is not going to help. In 2017 the LIQUDITY GAP has risen to a level the world has never seen and the smart short selling super funds know this. They are pouncing next year. Another reason to be cautious.
This is all new. Untested in crises. No one has the answers only untested theories. The smarty pants creating these theories reach management who say always – alrighty then that sounds good. Because THEY are making SO much MONEY. In SUBPRIME everyone said – how could this have happened. Why didn’t management know the risk mountain they climbed? They did know. They just blame danced out of it for greed. Trust me.
They know now.
The short seller market is now entering ETF. Fortunes will be made as ETF liquidy explodes and there is none. Save for the SHORT SELLING buying LOW and selling HIGH. Smart plan for super bucks. The BIG ONE larger in opportunity than SUBPRIME in our opinion and growing at a crazy unregulated pace. THE SEC has rung alarm bells but in the new digital global markets local regulators simply can not police the cloud trades where all the action takes place without new laws. Regulations are local the real trading is now outside regulation in the cloud. BLACKROCK and CARLYLE with some 50% of trillions in ETF – look again folks – balance your trades with your own short moves. NOW. I should think. Before your on the wrong side. Again
So we tell you watch ETF markets closely. WE are.
Berny Dohrmann – Telling you first and telling you hear – duck !