In this episode, Mark talks about algorithmic investing and ETFs. People are underinvested in equities, they say “equities are risky”. ETFs are Change Traded Funds and are a fund that is traded on an exchange. They have marketable security and trades like a common stock on a stock exchange. You can buy and sell at anytime when the market is open. Investors do not understand what they are buying and what they are invested in. ETFs encourage a trading mentality not an investing mentality. The more complicated you make investing the easier it is to get people to move their money. Do not look at cost - look at the solution to the problem. He discusses an article: “blame the automated trading program and algorithms”. Don’t get caught up in the buzz!
July 10, 2017