Charles Biderman, chief executive officer at TrimTabs Investment Research, says investors should be cautious because "volatility is enormous" in the stock market. He favors emerging markets and commodities. Bloomberg Radio's Catherine Cowdery reports on Exchange Traded Funds.
Borrowing to buy U.S. stocks is rising at a pace that suggests investors are too exuberant and share prices are poised to fall, according to Charles Biderman , chief executive officer of TrimTabs Investment Research.
Charles Biderman, chief executive officer at TrimTabs Investment Research, talks with Bloomberg's Pimm Fox and David Wilson about equity flows in the mutual and bond funds markets, and leveraged exchange-traded funds.
Investors put $356 billion into U.S. checking and savings accounts in the first six months of this year, almost double the $188 billion they deposited into bond mutual funds and exchanged-traded funds, according to TrimTabs Investment Research.
U.S. stocks rose, giving the Standard & Poor’s 500 Index its longest advance since December 2010, as optimism the Federal Reserve will act to stimulate the economy helped the market recover from an earlier decline.
U.S. stocks advanced, sending the Dow Jones Industrial Average toward the highest level since 2007, as retail sales increased by the most in five months and the Federal Reserve said the jobs market has improved.