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

End-of-cycle anxiety

The current economic expansion in the US is only five months away from being the longest ever recorded. And with unemployment near historic lows, and consumer and business confidence showing great strength, it is difficult to foresee an imminent derailment of the US economy. However, human minds function largely on the basis of anticipation, and … Continued