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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: The_Commodore who wrote (63430)	3/13/2020 12:06:30 PM
From: Nya_Quy	1 Recommendation Recommended By The_Commodore Read Replies (1) \| Respond to of 78959

Yeah, I have heard Howard Marks talking about this same thing some months ago. He referred to the fact that certain ETFs, especially those tracking securities that are illiquid (bonds, nanocaps, etc.) could create the illusion that the underlying securities are as liquid as the ETF's themselves. Especially these illiquid securities are hammered completely whenever enough investors holding those securities through their ETFs suddenly decide to sell the ETF containing said illiquid security. In this case we have a "sell at any price scenario", as there will not be enough trading volume to absorb the selling. -- Nya --