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Keeping it Simple | Ep. 50: And Yet It Moves!

Keeping it Simple with Simplify Asset Management

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Dynamics of Passive Investing

This chapter examines the contrasting dynamics of high yield and fixed income investments against the complexities of stocks, advocating for passive investing as a prevailing strategy in today's market. It sheds light on the risks associated with increasing passive share in the market and the potential volatility it could cause, drawing analogies to predator-prey dynamics in market participation. Additionally, the chapter reflects on the implications of inelastic stock behaviors and recent shifts in market responses, urging investors to learn from historical trends to navigate future strategies.

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