ELECTRONIC TRANSFERED FUNDS:
We have long reported on market bubble distortion by ETF markets. More than quarter of a trillion dollars has flown into the ETF market since the Trump Election. Economic ministers around the world THIS WEEKEND noted the price of US market shares – is a SUPER BUBBLE driven by distortion of ETF markets. Software trading against software. The problem of ETF markets includes:
- Software bets on market manipulation and value influences never seen before
- All outside conventional regulation and oversight
- ETF’s are short term capital contracts that can reverse fast
- Clearing in downturns clearing is a major issue
- Liquidity in crises liquidity or ETF redemption could we think WILL freeze up
We join finance ministers of the world in conclusions that ETF’s as IMF and World Bank leadership warned last year – are creating SUPER BUBBLES in world markets. We also join experts in the US who conclude the markets are insanely overpriced. Can they go up. You bet. But that is risk on. At your risk.
Insulating against the trend is the answer.
The rule never changes. Buy low. Sell high. We suggest you explore selling now. Invest in high return guaranteed diversified insurance assets and wait. Then buy in at the bottom of the crash.
Ponder this idea.
Berny Dohrmann – Chairman CEO SPACE INTERNATIONAL
— March 20, 2017