The Impact of Passive and Systematic Investing in Traditional Financial Markets

The most important thing for people to understand is that a market doesn't represent information. What you've actually signed up for is an active manager who has the world's simplest algorithms. And on my estimates, about forty four percent of the us. Equity markets are now passive. About 27 % of the us debt markets are now Passive. So i think the impact is quite significantand i think the evidence is very, very clear that we have created a system that i liken to driving a car uphill with no brakes. It feels great long as prices are going higher. As they go down, if the instructions are sent to the passive players, sell, they will not stop and say, are