The David Lin Report · Wednesday, July 8, 2026
Rick Rule expresses significant concern about the potential for a 'run on the bank' scenario triggered by high-yield ETFs. He explains that if investors begin to sell these ETFs due to credit concerns, the illiquid nature of the underlying assets could force managers into distress sales, leading to a cascade effect.
“If I had to think about one thing that really scares me, that's it.”
“The manager will have to sell assets that he or she can't sell to fund redemptions, which they must fund. That's where the run on the bank comes.”
“And that really scares me. Really, truly scares me.”