The End Of The World: E*Trade Yacht Commercial Edition

“The dumbest guy in high school just bought a boat.”

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When ‘Trillions Of Dollars’ Goes ‘Blind’: Howard Marks Is Worried About ETFs & Passive Investing

“ETFs don’t have fundamental analysts, and because they don’t question valuations, they don’t contribute to price discovery.  Not only is the number of active managers’ analysts likely to decline if more money is shifted to passive investing, but people should also wonder about who’s setting the rules that govern passive funds’ portfolio construction.”

Chart Of The Week: Some Folks Are Trying To Pick Stocks Again

Right, so the thing about “alpha” is that it’s really fucking hard to generate when benchmarks only go up. Throw in the rampant proliferation of retail-friendly vehicles that track those benchmarks at a cost of just a few basis points in fees and you’ve got a veritable nightmare scenario for coke-sniffing, Perrier-Jouët-chugging, “2 and 20”-charging, Hamptons…

The Ugly Truth About ETFs Is Revealed (In A Footnote)

“[This assumes] the ETF secondary market remains balanced between buyers and sellers. this higher liquidity profile of ETF assumes secondary market liquidity does not disappear, which may be the case in theory during a sell-off or a one-way market. In these instances, the client (sale) order execution would require tapping underlying market liquidity. ETF liquidity would then just be the same as that of the underlying assets. If these underlying exposures are not liquid, ETFs would be not liquid either.”

Why You Shouldn’t “Invest” In 3X ETFs: Exhibit “B”

On Friday, people are buying the “Brazil just proved their political crisis is intractable” dip. Fresh off an exceptionally harrowing session that tripped circuit breakers and threatened to plunge the entire EM complex into chaos, the Ibovespa jumped nearly 3% as investors went “bargain” hunting in Latin America’s largest economy. As noted earlier, Michel Temer insists…