ETFs are becoming a serious problem for the markets

The Bank of America warned that record-sized funds targeted to index funds could cause a serious problem.
The great popularity of this kind of passive investment schemes may lead to liquidity problems, alarmed by the financial institution.
According to the bank's report, the real stock available for S&P 500 components can be seriously overestimated.
Ultimately, this can lead to more serious fluctuations in stock markets, especially in times of decline, given that a company, a sector or the market as a whole is affected by one or another factor.
Passive index funds have become particularly popular among investors. They are currently managing funds of over $4 trillion, the report said.
The report of the financial institution also advises individual investors to target more under-valued parts of the market, and it is important to overtake index fund managers when it is time for them to rebalance their portfolios.
The other problem that emerges is that when the number of sellers exceeds the number of buyers seriously, the liquidity problem will result in a more severe fall in the indices.

FANG companies will continue to dominate the market

Companies in the FANG group dominate the markets at the moment. However, according to some analysts, investors are unlikely to expect that they are soon will start losing momentum, although they are becoming more and more expensive.
According to the Canaccord Genuity, although technology companies look expensive, compared to three years ago, they are still fairly valued in terms of historical standards, especially compared to the "technology bubble."
However, companies in the FANG group are difficult to be avoided by investors. Among the 21 major technology companies, with an expected sales growth of over 15% this year, four are the companies of that group.
The next year's elite group is expected to decline to just 12 companies, with the four companies re-entering it in terms of potential sales growth of 15%.
The four companies are expected to continue to benefit from four key areas of growth - digital regulation, digital video, e-commerce and cloud services, experts say.

Europe's still heavy breathing after France

The upward momentum of the middle of the week proved to be insufficient to move the markets a bit higher and the main European exchanges ended the trade in red on Thursday:
The European Stoxx Europe 600 closed with a loss of 0.52% to 394.39 or a decline of 2.06 points.
The German DAX30 recorded the most swan-diving decline in the main European indices - -0.36%, closing at 12711.06. With the largest decline in stock prices, were the companies Prosiebensat 1 Media AG (-5.95%), Deutsche Post AG (-3.40%) and Heidelbergcement AG (-2.73%).
The French CAC40 halted its growth and declined by 0.32%, closing at 5383.42.

Earlier UK elections put FTSE 100 under pressure

Investors have remained in a standstill against the backdrop of Britain's upcoming parliamentary elections and the upcoming presidential vote in France.
The FTSE 100 wiped out its growth from the beginning of the year, closing at 7,114.36 on Wednesday, losing even more -0.46% of its value, and the International Monetary Fund warned that the unpredictable Brexit result puts risks to global financial stability at a time, in which it is already facing challenges from heavily indebted US corporations, the credit bubble in China and the weak European banks.