News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Asset Management

ETFs could make the next market ‘tantrum’ worse, analysts warn

If investors stampede out of bonds, ETFs investing in proxy sectors like real estate could also be clobbered, according to Ned Davis Research

Over the past several months, investors have poured funds into government bonds rather than riskier assets like stocks. Now one research firm thinks that exuberance has reached a peak.

Markets may be setting up for a “rate tantrum” that will clobber not just bonds, but also their “proxies”, or sectors that investors turn to for fixed income and stability.

WSJ Logo