Argentinian ETFs: Beware The Mouse That Roared – Global X MSCI Argentina ETF (NYSEARCA:ARGT)

Argentinian ETFs: Beware The Mouse That Roared - Global X MSCI Argentina ETF (NYSEARCA:ARGT)

For the amount of ink that was spent on Argentina last week, you would assume the country was the lynchpin holding together the Western hemisphere, not a perennial problem child with a market cycle of booms and busts so regular you could set your watch by it. But once again, just the hint of Cristina Fernandez de Kirchner returning to power was enough to send investors fleeing the country, as equity markets crashed by as much as 50% last Monday, which fed a vicious chain reaction that saw the nation’s…

Leveraged ETFs Are Bleeding Alpha

Leveraged ETFs Are Bleeding Alpha

Background Leveraged ETFs aim to multiple the gains of an underlying index by a fixed factor. These funds have only been around for about a decade, but they’ve demonstrated a remarkable ability to achieve their stated objective. For example, if you plot daily gains for the ProShares UltraPro S&P500 (UPRO) vs. the Vanguard 500 Index Fund Investor Shares (VFINX), you see nearly perfect 3x amplification. A perfect 3x ETF with no expense ratio and no tracking error would have alpha = 0, beta = 3, and R-squared = 1, and…

Judge dismisses turnaround guru’s racketeering case vs McKinsey By Reuters

© Reuters. Logo of McKinsey and Company is seen at VivaTech fair in Paris By Tom Hals WILMINGTON, Del. (Reuters) – A federal judge dismissed claims on Monday by turnaround pioneer Jay Alix that McKinsey & Co violated racketeering laws when the consulting firm expanded into advising bankrupt U.S. companies. Alix accused the consulting firm, known for its secrecy, of improperly concealing potential conflicts when it sought bankruptcy court approval to advise companies in Chapter 11. The decision is part of a larger battle between McKinsey and Alix that has…

The Yield Curve and Other Economic Indicators

The Yield Curve and Other Economic Indicators

Of the market and economic indicators that usually precede recessions, none receives quite the attention as the steepness of the yield curve. It’s for this reason that markets reacted with uncertainty to last week’s intra-day yield curve inversion – the first since 2007. What does this mean for long-term investors and what’s different this time? Although much has already been written on this topic, it’s an important one for investors to understand. The reality is that not much has changed for long-term investors over the past two weeks. The yield…

Net Flows For Financial Service Funds Take A Turn For The Worse

Net Flows For Financial Service Funds Take A Turn For The Worse

In what was already a down year for the group the Financial Services Funds (including both mutual funds and exchange-traded funds) peer group suffered their two largest weekly net outflows of 2019 during the last two fund-flows trading weeks. The group saw $1.7 billion and $1.3 billion leave its coffers for the weeks ended Wednesday, August 7 and Wednesday, August 14. These results pushed the group’s net-negative flows for the year to date to $9.4 billion, just slightly below its worst-ever annual net outflow of $9.5 billion in 2018. Financial…