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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (17403)	12/4/2015 6:14:02 PM
From: John Pitera	1 Recommendation Recommended By The Ox Respond to of 33421

Hi OX, I absolutely agree with you on your points...... for several years commentators have remarked that looking at the NYSE A/D ratio's and other metrics were being distorted by the proliferation of bond funds, ETF's and so you could not get a good read of what the actual stocks were doing compared to the entire composite universe of Currency hedged ETF's ...... leveraged bull and bear ETF's etc. Wouldn't it make sense that they hold a larger total share of the market for corporate bonds? Yes according to Bloomberg the percentage has increased from 4% to 20 %. So Mutual funds hold 5 times the corporate bonds they did in 1990...... and I suspect that the 20% number may be a little low due to trailing data. And so a liquidity problem with this is that mutual funds can be sold at very short notice and the fund manager has got to have the liquidity for redemptions..... ( I know that you Known this ;-) ) John