Tweet War

Since Trump’s tweets last Sunday threatening to impose new tariffs on China, the stock markets have fallen from levels close to their all-time highs, with the S&P 500 down 3.5% in  the week. Although both technical factors and the volatility due to being in the middle of the earnings season may have had some influence, … Continued

ETFs, financial stability and the invisible hand

Warnings about the risk that the widespread use of ETFs entails for the proper functioning of financial markets are widespread. The criticism, no matter whether genuine or motivated by interests, is fundamentally based on two complementary narratives: the “dumb money” distortion and the “house of cards” risk. The first points to the misallocation of capital … Continued