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RE: Is The Stock Market Really About To Face an "Epic" Downturn? By Gregory Mannarino

in #money7 years ago

Gregory Mannarino, Ive read that there are now more ETFs than there are stocks. It seems like this would potentially be like a time bomb if the market turns soft in a hard way. As people exit an ETF they will be exiting many stocks ar the same time taking down what miggt be good stocks caught up in the storm. Some of the ETFa are 2x or 3x leveraged which may cause margin calls even faster. I feel like there is potential for a crash that goes well below fair value as positions unwind, then possible a spike back up above fair value before returning to fair market value. Could be big money made when this finally falls apart.