The Inelasticity of the Market

In this episode I speak with Michael Green, Chief Strategist as Simplify ETFs.  In a first for the Flirting with Models podcast, we recorded this episode live at the ETF Exchange in Miami in early April 2022.  

Given Michael’s eclectic background, our conversation is wide ranging.  He has traded everything from small-cap value to commodities to housing derivatives to long volatility, and so we try to find the common elements and themes across his career.  One that sticks out is his quote that “it’s not enough to do the analysis: there needs to be a trade there as well.”

Michael has become well known for his view that passive investing may now represent a systemic risk to markets.  We discuss the origins for this view, how it has evolved, counter-points, and the trade that pairs with the analysis. 

Finally, we discuss the Simplify High Yield PLUS Credit Hedge ETF, the first strategy from Simplify that really has Michael’s fingerprints all over it.

I hope you enjoy my conversation with Michael Green.