"Journal Times" declare : How major US stock market indexes fared on Wednesday

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referring to Federal Reserve members have been expressing concern that the stock market is acting in an irrational manner. If the Fed happens to get even a short period of reasonable economic growth, an unexpected rate hike would shock Wall Street back into obedience. It hasn't happened since Paul Volcker was Fed chairman in the 1980s, but a surprise, between-meeting rate hike would do the trick. What can Fed boss Janet Yellen do to make Wall Street behave? As I've been saying, the Fed has little reason to raise rates in the first place because the economy is still weak.

Feds concerned the stock market is being irrational
referring to

B. of A. warns the rise of ETFs is distorting the stock market

"Crowded stocks have generally underperformed‎ neglected stocks as mutual funds are net sellers and passive funds are net buyers. Bank of America Merrill LynchETFs currently account for nearly a quarter of U.S. stock-market trading volume versus 76% for individual stocks. Strategists at Bank of America Merrill Lynch, led by Savita Subramanian, earlier this week warned in a report that the surge of ETFs is distorting the stock market and making it less efficient in the process. Bank of America Merrill LynchPassive investing, by any definition, is nothing more nefarious than a different approach to buying and selling stocks. For a glimpse of what a market increasingly driven by ETFs looks like, Subramanian pointed to Japan.

B. of A. warns the rise of ETFs is distorting the stock market


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