FYI: If you really want to find a scapegoat for volatility or losses in your portfolio, you don’t have to look very far. The financial media and investors who lack self-awareness are very quick to point a finger after seeing their holdings fall for a number of reasons — high frequency trading, the Fed, risk parity, passive indexing, mom & pop investors, the shadow banking system, tax loss harvesting, junk bonds, increased market correlations, risk on/risk off, short-sellers and the list could go on.
The latest culprit, according to many, is exchange-traded funds, specifically of the bond variety. Earlier this week Matt Hougan over at ETF.com had a very thorough write-up on why the worries about fixed income ETFs appear to be much ado about nothing:
Regards,
Ted
http://awealthofcommonsense.com/avoiding-forced-irrationality/ETF.Com: Matt Hougan Article:
http://www.etf.com/sections/blog/etfs-solve-mutual-bond-fund-problem
