The Risk of Passive Selling

Michael Green (@profplum99), Chief Strategist and Portfolio Manager for Simplify Asset Management, joins Julia La Roche on episode 84 for a wide-ranging conversation on the economy and market.

In this episode, Mike Green breaks down some of the implications of systematic and passive investment strategies and how they lead to the current market phenomena.

Michael has been noted for his work as a market theoretician and financial media participant. He is a graduate of the University of Pennsylvania and a CFA holder.

Follow Mike on Twitter: https://twitter.com/profplum99

Read Mike’s Substack: https://www.yesigiveafig.com/

0:18 When are we going to see a recession? 

1:06 In the recession camp 

2:40 Labor is bifurcated 

4:55 Student loan debt 

8:00 Implications of AI 

13:55 Markets and the implications of passive investment strategies 

18:10 Creating an asset bubble 

21:57 What happens when the selling starts? 

24:00 Driving a car uphill with no brakes 

28:20 Growth of passive 

33:58 Inelasticity of the markets 

36:20 The Fed 

42:22 Operating off fantastically outdated theories 

45:00 Downside of these strategies 

49:30 Narratives in the markets 

54:00 Parting thoughts