Destocking and desecuritisation

Destocking and desecuritisation

ETF is like the dam in the rivers of financial assets. When the interest rate is low, it will enlarge the reservoir of assets; When the interest rate is rising, it will shrink it. It is the interest rate that dictates the cost-efficiency of the carry trade enabled by ETF. Trust me, ETF’s sorry episode won’t bode so well for the stock market.

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