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ooli · 2054 days ago · link · · parent · post: Ben Carlson: Debunking the Silly “Passive is a Bubble” Myth
As the article said : I have ETF shorting the index, Shorting with a x5 leveraged, I have ETF on gold, oil, bonds, whatever I can think of, all less correlated to equity than any active fund.
Probably those ETF trade for far less volume than S&P's ETF but I dont get how The 1st dude (the 2008 short guy) can pretend their is a systematic risk with ETF when he only address the (legitimate) risk of
- "self-reinforcing feedback loop"
If he only mean we have an irrational equity bull market because of ETF (which are mostly S&P related, volume wise), then he got a point. But it's not "passive is a bublle" it must say "passive is creating the bubble'"and active or passive, you'd better stay away of that artificial bull market