As you can see from my picture, I don’t do “fancy.”
I like comfortably loose shirts, good food, and in general, simple things that work.
It’s no surprise to anyone keeping up with the news that we live in an investing culture that values everything but investing.
Nowadays, everyone sprints for the Next Big Idea that they think can hand them quick and easy gains. They use complex investment strategies and endless leverage. And then when it all goes south, they lose their shirts (which are a lot more expensive than mine)…
At this stage in my career, I can pretty much do anything I want.
In fact, last week I rented out a 46,000-seat stadium (Orioles Park at Camden Yards) just so I could record a little video footage. (More on that in just a few minutes.)
So let me be blunt: ETFs suck.
And you should not invest in them.
I tell people all the time that the ETF is a primary weapon in Wall Street’s arsenal. It’s their way of selling you a ticket on the Hindenburg since most investors don’t know what the heck they’re buying into when they buy an ETF.
And the ever-growing ETF market is a minefield of risks as people seek out new ways to beat the market or trade themselves into abject poverty.
Initially, ETFs focused on indexes that provided low-cost liquid asset allocation choices to investors, but we have evolved well past that stage. In today’s market environment, if you have an ingenious idea, odds are someone has already developed an ETF to exploit it.
These ETFs are made even more exploitative by the fact that Vanguard, BlackRock, and other money managers heavily market them to us via Fox News and Facebook. The advertising is great, the sales pitch is excellent, and you will be very comfortable in the herd. For awhile.
Here’s the thing. When ETFs crash (and they will), they’ll create the mother of all profit opportunities…if you play it right.