MarketWatch's Chuck Jaffe writes about the eight biggest stories he thinks will hit the market in 2013.

They are:
1. He thinks big industry names will massively move into ETFs. Currently, only Vanguard[profile] has been allowed by the regulators to create an ETF class for their mutual funds but other players have filed paperwork to be allowed to create an ETF extension of their traditional funds.

2. Jaffe expects the conversion of active mutual funds to ETFS, which is a continuation of ETF sphere expansion that started in 2012.

3. A price war will likely be ignited by the creation of new ETFs.

4. He thinks the talks about 10-year returns will be reignited.

5. Jaffe expects that the talk on money funds reforms will pave way for the next-generation money funds to be approved.

6. The talk about tax rates changes will completely be shunned, given that the investors will be least affected by such.

7. He expects a derivative blow-up in 2013, sending shocks to investors who put their money on funds that hedge away risk.

8. Lastly, he foresees that those who put their money in long-term bond funds who discovered their safe zone will not be given security nor sanctuary.

 

Edited by: HFD


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