When Passive Investing Turns Active, Make Sure You’re Ready

0 | By Shah Gilani

The whole idea of passive investing – investors tracking the market by owning index funds – has been turned on its head by exchange-traded funds (ETFs).

Most ETFs are index funds, but the investors in them have become anything but passive. Active ETF trading has become the new passive investing, which makes ETFs potential financial weapons of mass destruction.

I’ve been warning my readers about the dangers of ETFs for years. ETFs can lead to a crash when so-called passive investors turn active, as they have been doing lately.

Barron’s front-page story on Monday morning about John C. Bogle, the father of passive investing through mutual funds, got me riled up. It’s a good summation of some of the problems with index ETFs, as Bogle sees it, but it doesn’t go into the weeds at all.

Active traders turn ETFs into dangerous entities for passive investors, but there’s a way to protect yourself from their chaos…

Wells Fargo’s Latest Criminal Activity Uncovered

0 | By Shah Gilani

The dirt at Wells Fargo & Co. (NYSE:WFC) knows no depths. This week, yet another example of systemic fraud was unearthed.

From 2017 through early 2018, employees at the Systemically Important Financial Institution (SIFI) fraudulently altered social security numbers, addresses, and dates of birth on thousands of corporate customer documents.

Here’s what the bank was dodging, who should be fired (and jailed), and where to put your money when major institutions fail you…