BRK.A

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ETFs

Here's How Wall Street's Selling Everyone Tickets on the Hindenburg

Everybody loves exchange-traded funds (ETFs) these days.

There are a mind-boggling 2,000 ETFs, give or take, in the United States today. Roughly 70% of those are equity funds.

The three largest equity ETFs, packed with around 25% of all equity ETF assets, are S&P 500 index funds, like the SPDR S&P 500 ETF Trust.

Now, it's true that indexing gets most of the investment love at the moment, but there's a really brisk business in so-called "motif" or "thematic" passive strategies.

These let investors tap into just about any sector or idea that strikes their fancy.

Of course, you can passively invest in exciting sectors like robotics, defense cybersecurity, or biotechnology, but you can also buy ETFs that invest in faith-based or special-value principles, like veganism (I'm serious) and animal welfare, or social justice.

Essentially, here in the weird year 2018, if an investor can fathom it, there is an ETF that can be created to allow for one-click investing in the idea.

But ultimately, most of the money is flowing into the large-cap indexes.

After all, indexing is the new pet rock/Rubik's Cube/Beanie Baby, and, as such, is the answer to all our investing prayers.

Wall Street is embracing the idea that the unmanaged indexes will usually outperform the highly paid active managers.

Faced with the prospect of collecting low fees, or worse, no fees, even the old-school brokerage and investment management firms are pushing the idea of low-cost index funds to their clients.

It is the ultimate solution (to a problem nobody really has). Like party drugs, nobody can get enough of these things.

Well, when (not if) the market turns and the sun comes up on the carnage, it's going to be much worse than anyone ever realized...

Stocks

The Future Conglomerate That Will Shake Healthcare to Its Core

There was big news last week. News about big names and the big stocks that tanked once the headlines started to hit.

Apparently, Jeff Bezos, Warren Buffett, and Jamie Dimon are throwing in on some kind of healthcare company. A nonprofit, of all things.

While the announcement was heavy enough to sink healthcare stocks (including Express Scripts, CVS, Cigna, Anthem, and some biotechnology companies), details were light. A lot of blind speculation and head-scratching followed.

Don't bother digging around to see if anything anyone said or wrote about the new venture is particularly enlightening. I already did plenty of digging, and no one's even close to figuring out what they're planning.

But I know.

Here's why Amazon, Berkshire Hathaway, and JPMorgan Chase are partnering up, why their so-called "non-profit" will become a thriving for-profit business…

Plus what their endgame really is...

Dow Jones

Why Warren Buffett Dismisses Overvaluation Fears as the Dow Jones Today Rises Again

The Dow Jones today is projecting a 31-point gain in pre-market hours as Warren Buffett says low-interest rates make today's soaring stocks properly valued.

Global markets have been rallying again as traders shake off concerns about North Korea, Catalonia, and other geopolitical hotspots.

Here's a look at today's most important market events and stocks, plus a look at today's economic calendar...

Dow Jones

The Dow Jones Today Is Flat, but Warren Buffett Predicts the Index Could Reach 1 Million

The Dow Jones today is dropping in pre-market hours after Fed Chair Janet Yellen announced the end of its massive financial stimulus program, leading to a $4.5 trillion balance sheet.

But investing giant Warren Buffet says he can see the Dow rising to 1 million…

Here's a look at today's most important market events and stocks, plus a look at today's economic calendar...