Danesh Rohinton's blog

Thinking through volatility in ETFs and financial markets

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Global markets were jolted Monday morning with elevated volatility as a group of ETFs fell intraday between 25% to over 40% within minutes of the market opening, which triggered a broader correction. In short order, well known blue chip firms such as GE, Pepsi, Visa and Starbucks briefly fell over 15% before recovering. It’s worth highlighting that the seeds of this volatility were sown years ago with the growth of ETFs in the market and the risks they pose to their investors.

Thinking through the Chinese savings system

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In an earlier blog, Brandon shared his thoughts on the underlying sources of growth in the Chinese economy and the significant role easy credit has played in sustaining economic growth and funding distressed industries. The natural question then is: why would hard-working savers put all of their money into risky investments with uncertain returns or in a bank that makes risky loans?

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