How did ETFs function during the 2020 market sell-off and did the indexing bubble burst? which ETF structures failed the stress test and which passed? Topics covered include: Show Notes The Big Short’s Michael Burry Explains Why Index Funds Are Like Subprime CDOs by Reed Stevenson—Bloomberg ETF backers declare victory after ‘largest ever stress test’ by Robin Wigglesworth—Financial Times ETF growth is ‘in danger of devouring capitalism’ by Robin Wigglesworth—Financial … [Read more...]
296: Why Negative Prices Exist and What Can They Teach Us
Why the oil price fell below zero and what are other examples of negative prices. What lessons can we learn from negative prices. Topics covered include: How oil futures work and why the oil future prices fell below zero for the first time ever.Why has the United States Oil ETF (USO) lost so much money.How ETF authorized participants create new shares only so they can be shorted.How storage problems for oil and electricity can lead to negative prices.How negative interest rates are … [Read more...]
