WWII 058: Part 1 of ETFs - How ETFs are Created, Learning Fundamental Analysis, Long Term US Bonds for Safety, Fed Eyes Balance Sheet Shrinkage
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Main Topic: How Exchange Traded Funds (ETFs) are Created
You can't open a magazine or newspaper on the subject of investing without running into an advertisement for an Exchange Traded Fund. This fairly new type of security is proliferating faster than a bed full of bunnies.
Exchange traded products are proliferating, but more of them are also dying off. A record 128 exchange-traded notes and funds were closed during 2016, bearing the previous record by 26. Over-all numbers rose by 112, to 1,960, and assets swelled by more than 20% to $2.56 trillion. “Industry watchers have been concerned that expansion has come too quickly and shakeout of some sort is probably duel” Reported in Barron’s credit to CNBC.com
Ask JB: Learning Fundamental Analysis and should you invest in long-term US Treasuries?
submitted 1 day ago by MrHackberry
JB Says: There are two disciplines to study, accounting, and financial statement analysis. Go on Amazon, and buy a basic accounting book and study it cover to cover, doing all the practice questions. Accounting is the language of business.
Next, study the financial statements analysis book in the same manner. From there, if you are still awake and interested, move on to advanced financial statement analysis, then business valuation.
submitted 5 days ago by justdoit4265
JB Says: There are two answers to the question. First, US Treasuries are the most secure bonds on the planet, no matter what anyone says about them. Second, long-term treasuries should be issued with a warning label. The price of the bond will fall over time with rising interest rates. If you pay more than face value for the long term treasuries, you will have a capital loss, offset by interest you will receive.
Whether or not you should be investing in Treasuries will have much to do with your financial situation. But in general, understand the relationship between bond prices and interest rates and you will be in position to make decisions.
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