What we’re reading (6/11)
“ETF Flows Sputter As Investors Favor Defensive Strategies” (Wall Street Journal). “Money typically chases performance in the $7 trillion exchange-traded fund market. This year, it is sitting on the sidelines. Despite a 12% rally for the S&P 500 so far in 2023, ETF flows paint a picture of a cautious investor base, reluctant to wade back into equities after a rough 2022.”
“Thematic Investing: Just Say No” (Morningstar). “That you have not heard of such funds, save perhaps for Steadman, suggests all one needs to know about high-concept sector funds: They fizzle. Those from our grandparents’ generation did, as did those from our parents’ time. So will the current incarnation. Over time, the sectors—sorry, ‘themes’—change, but the story does not. Buying the current headlines was, is, and always will be a mug’s game. As somebody once said, ‘If the bozos know about it, it won’t work anymore.’”
“The Rebalancing Bonus” (A Wealth of Common Sense). “My view on this is that it’s horseshoes and hand grenades — close enough does the trick. The most important thing with rebalancing is that you have a plan of attack, stick to that plan and automate it if you can to take yourself out of the equation.”
“A Startup ‘Mass Extinction Event’ Has Begun. You Can’t See It Clearly Yet, But It’s Going To Be Bad.” (Insider). “Venture capitalists love to talk about how failure is essential to innovation. They will have a LOT to discuss soon.”
“Every Investor Needs to Worry About the Risks Piling Up In Private Equity” (Institutional Investor). “As more allocators built larger positions in private markets, Allspring’s Kevin Kneafsey set out to learn if there were hidden risks to the entire market ecosystem.”
