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Dave Nadig
2:59
Good afternoon everyone on this Cold December 20 ...
3:00
As always, you can enter in your questions below, and I'll get to as many as I can before the RSI kicks in.
We'll post a transcript up shortly after we're done, at this same link.
And with that, let's get to som equestions.
Diego Ruiz
3:00
Does the recent ACA ruling impact healthcare ETFs at all?
Dave Nadig
3:00
So, two questions in one.
3:01
I don't think the ACA court case stands for more than a second longer it takes to get in front of an appeals judge.  Regardless of where you are on the political spectrum, most legal folks agree its badly argued.
As for what this event means -- it means yet-more-uncertainty for the entire health care system.
And uncertainty translates directly into "investors will demand higher expected returns" - which means lower prices.
3:02
So chaos, in general, is bad for stocks.  Period.  Regardless of the source of that chaos, or which sector it is.
Jill Faraday
3:02
How old were you when you started investing? An advisor said she gave a retirement seminar and 1 attendee was in his 20s and she was elated, as most were in their 60s.
Dave Nadig
3:03
Interesting question!  My first brokerage account I opened in 1985 or so with a small amount of money I got from a relative (I think $5k)
I would have been around 18.
And yep, I learned a LOT about markets before I turned 21!  Was a good time to get started!
3:04
When I do bigger events, like the MOney Show, while the stereotype about individual investors skewing older is true
I do see .. consistently .. folks in their 20s at those events as well, which is awesome.
Sunja
3:04
Hi Dave. In your opinion what ETF/ETN launched this year that has been most interesting, or that filled the greatest need this year?
Dave Nadig
3:05
Sorry if this is a bit of a broken record answer: but I think the defined outcome etfs from Innovator are both the most interesting and possibly the most useful ETF launches of the year.
I think the Vanguard factor ETFs are notable, as well, and I still like the Cambria Trinity ETF a lot (TRTY I believe)
Sig
3:06
What is going on with SPXS? It’s supposed to triple opposite the s&p500? And it’s currently double? In other words, the s&p is down 2.1 and spxs is only up 4.2%?????
Dave Nadig
3:06
Hi Sig.  So, a few things.
3:07
First, these things only work when measured exactly on a one day period.  In other words, from yesterday's close to todays close.
I'm not sure what period you were talking about here ... let me look
So right now, I see SPXS up 4.49
3:08
I see SPY down 1.59
So that seems pretty much on the money
Two possible things: you could be looking at 15 minute delayed quotes on one and real time on the other.
but more broadly speaking - if you were looking past 1 day, reballancing would mess with your returns a lot.
3:09
That's not a bug, thats how the products are designed to work - to track over a one day cycle, then reset to do it again tomorrow.
Anon
3:09
So, in sleepy low volume markets, is it a good, or terrible time to trade?
Dave Nadig
3:10
So, in general low volume markets are inconsistent.
meaning, the price signals are weak.  To use old school technical speak, you want a low volume move to be "confirmed" by a high volume day at the same level.
3:11
Now, SOME traders LOVE low volume days, like the half days before big holidays, because they believe the market is full of pajama traders who will do silly things.
Others simply avoid them altogether and sit out (hence the lower volume on those days!)
The "pajama trader" argument is similar to playing at terrible touristy poker tables in las vegas -- you assume the people your playing against are idiots.
3:12
I think assuming the market in general is "an idiot" is a recipe for despair, most of the time.
So I tend to side with the "sit it out and wait for confirmation" side of things.  Great question though.
EMily Grey
3:12
How would you best describe the creation redemption process in the context of fixed income active etfs?
Dave Nadig
3:13
Phew OK.  Well.
MANY actively managed fixed income ETFs use cash creations.
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