Perth, Australia, 05/28/2017 /SubmitPressRelease123/
Many ETF investors are unaware of a range of significant risks to their investments according to a group of experienced traders. Gary Norden of Australian-based Organic Financial Group, Nam Nguyen of Canadian firm Harbourfront Technologies and Larry Gazette, a US-based trader have between them nearly 80 years of market experience.
“Many investors wrongly believe that all ETFs are simple, passive structures with low risk,” says Gazette. “In reality though, many have a range of weaknesses that can significantly hurt investors,” according to Gazette.
“Even though we have only investigated a small percentage of ETFs so far, we have identified a number of vulnerabilities,” said Nguyen. “Timing when these vulnerabilities will strike is not easy, however, we are confident that we have a definable statistical edge in the set up for the trades we have already identified,” said Nguyen.
“The current market for ETFs, with huge amounts of capital chasing a relatively new type of structure, oblivious to its weaknesses, reminds us of the CDO market featured in The Big Short,” says Norden.“Both our quantitative analysis and market experience tell us that the huge growth in ETFs will end badly for many,” says Norden. “Opportunities like these do not come along regularly. We see this as a once in a decade opportunity to offer our investors a way to participate in the crisis that will engulf the ETF market,” says Norden.
In an interview with InvestorDaily, Mr. Norden said “These products have never been tested in a difficult environment. If there is a major event it’s going to be hard for everybody to exit at the same time in a number of markets.” “We’ve seen some ETFs that are constructed with an almost opposite view to another one. Those kinds of things we find interesting because they open up vulnerabilities” Read more
The traders are raising funds to start a hedge fund targeting these ETF weaknesses.
For more information contact Gary Norden at [email protected] or ++61 417 935396
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