Excess Returns  cover image

Mike Green on the Dangers of the Rise of Passive Investing

Excess Returns

00:00

Is the Stock Market Going to Crash?

The problem is, as we talked about early on, the liquidity doesn't scale in the same fashion. So ironically, the smaller stuff, you have less impact from passive than the larger stuff. Ben Hunt brings up this dynamic of narrative and I think that's a brilliant observation. We saw this in spades in the 2016 election of Donald Trump. And with the 2020 election of Biden, we decide to construct a narrative. Right?

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