Tag Archives: ETFs

Federal Reserve Warns Leveraged ETFs Could Trigger 1987-Style “Cascade” In Stocks

Posted on August 12, 2013 by DRenegade

In a 43-page research report, the Federal Reserve has authored a rather concerning tome warning that the mechanical positive-feedback rebalancing of Leverage ETFs (LETFs) resembles the portfolio insurance strategies, which contributed to the stock market crash of October 19, 1987. The impact … Continue reading →

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