Post Profile

How The "Perverse Economic Effects Created By ETFs" Are Setting Up The Next Crash

One of our favorite topics over the years has been observing the inversion of fundamental cause and effective, or rather, the reflexivity of synthetic, "passive" products such as ETFs and VIX, which in a normal world are driven by the value of their underlying securities, yet which in recent years have seen the direction of causality inverted, and where it is the value of the synthetic product that inluences the market price of its underlying constituents, or said simply, the "tail wags the dog.
read more


Related Posts

Market Volatility: Blame Leveraged and Inverse ETFs?

Business & Finance / Investing : CNBC: Trader Talk with Bob Pisani

An article stating that the SEC is making inquiries about the effect that leveraged and inverse ETFs are having on market volatility has caused a wave of paroxysm, hand waving and "I told you so!" exclamations, similar to the recent...

How VIX ETFs Help To Crush Vol And Ramp Risk Every Day

Business & Finance : Zero Hedge

There are underlying options on the S&P 500 that trade on exchange or OTC (depending on size and strike and margin package - arb or outright). On top of that set of options lies a world of futures and options on a 'created' VIX (tha...

These Crazy Maps Show The Unequal Cause And Effect Of Climate Change

Business & Finance : Fast Company

By distorting the world’s countries based on different environmental and economic indicators, we can see an amazingly clear picture of how emissions, resources, and poverty all combine. Climate change is a fundamentally unfair pheno...

How China's Slowdown Is Having Ripple Effects All Over The World

Business & Finance : Business Insider: Clusterstock

Chinese economic growth slowed to the lowest level since 1999 last year, expanding 7.7%. Policymakers have recognized the need to rebalance economic growth and are now slowly transitioning away from a credit and export driven econom...

VIX ETFs Are In Crisis Mode

Business & Finance : Zero Hedge

That's what happens Larry when there are 64 million shares short and only 52.3 million shares outstanding... VXX (Long VIX ETF) is exploding higher amid the short squeeze... XIV (Inverse VIX ETF) is reflexively puking to new lows......


Copyright © 2016 Regator, LLC