Bloomberg Daybreak: US Edition Daybreak Holiday: Trump versus Powell, ETF Inflows, Antitrust in Focus
Apr 17, 2025
Michael McKee, a seasoned Bloomberg International Economics and Policy Correspondent, dives into the tension between President Trump and Fed Chair Powell, emphasizing the importance of central bank independence. Eric Balchunas, an ETF expert, examines recent shifts in market dynamics, revealing investor tendencies towards cash-like ETFs amidst volatility. Finally, Jennifer Rie, a Senior Litigation Analyst, unpacks the ongoing antitrust battles with big tech, particularly the FTC's efforts against Meta, spotlighting the complexities of proving anti-competitive behavior.
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Retail Investors Support U.S. ETFs
- Despite market volatility, investors are still flowing money into U.S. stock ETFs, particularly Vanguard and NASDAQ 100.
- Retail investors are dollar-cost averaging instead of market timing, creating a 'Vanguard put' that buffers downturns.
Corporate Insiders Buy Shares
- Corporate insiders are buying shares of their own companies at the fastest pace in 16 months.
- Insider buying signals their confidence in their companies and offers some reassurance during market corrections.
Active Management's Mixed Performance
- Active stock managers slightly outperformed during the recent market sell-off by focusing on fundamentals and value stocks.
- Active bond managers underperformed because bond benchmarks favor more debt and momentum, leading to greater risk in downturns.