etf (2)

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Where Money's Been Flowing

When first-generation ETFs launched in the 1990s—such as the SPDR S&P 500 Trust (SPY) and the PowerShares QQQ Trust Series 1 (QQQ)—lead this year's outflows, that is a sign that institutional investors are scared. These first-to-market ETFs have the ample liquidity that big institutions tend to love, with many trading more than $500 million in volume a day. While newer ETFs that may do the same thing or more for cheaper have been launched in the intervening years, early ETFs still tend to curry favor with large investors that value liquidity. These investors tend to be more tactical, and thus outflows from these ETF stalwarts are a bearish sign. 

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Photographer: Balchunas, Eric

U.S. Treasuries of all maturities are raking in cash

According to Bloomberg, when U.S. Treasury ETFs are the brightest bright spot, that's not good. They have taken in more than $3 billion in net new cash (while junk bond ETFs have seen $2 billion in outflows). What is especially bearish is that the inflows int

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China On Margin; Oh My

1290915?profile=originalChina traders on margin accounts is a thought both wildly exciting, yet utterly terrifying at the same time.  Even more so in the wake of $10 billion in fraudulent currency trades discovered just last week. 

Chinese markets have had a long standing reputation as being nothing more than unmonitored casinos plagued with corruption and insider trading.  What could possibly go wrong?

According to the WSJ, the Hong Kong and Shanghai stock exchanges have published an overhaul of rules governing a new trading link that will open China's tightly held capital markets to the investing public, ahead of a launch that could take place as early as end of October.

The Chinese government has vowed to encourage further capital flow and open the country’s markets to international investors and conceded previously that numerous reforms would have to take place.  Such reforms risk destabilizing its economy, which is still veiled by strict capital controls.  Therefore the government has been implementin

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