Once again, this is a cautionary tale for investors. One the one hand, equity outflows depress stock values – which can be considered a true negative – while a switchover to ETFs creates a slight bump – which is a false positive. So far in 2022, the S&P 500 has seen a reversal of at least 1 percentage point from the day’s high or low on 162 trading days – the most daily u-turns since 2008. With fixed income markets looking better in comparison to long-term holdings in equities in general, this will create increasingly larger numbers of depress/bump cycles. While a longer-term outlook will remain murky, the cycles will create a number of tactical opportunities.

Exchange-Traded Products (ETPs) offer substantial potential to gain magnified exposure with potential losses limited to only the invested amount and no further. Learn more about Exchange Traded Products providing exposure on either the upside or the downside to the S&P 500 as well as the upside or the downside to the Nasdaq-100.