Mike Green, Chief Strategist at Simplify Asset Management, shares insights on the current equity landscape and challenges of passive investing. He discusses how the obsession with inflation might be overstated and delves into the implications of imminent US-China trade talks on market dynamics. The conversation highlights the complexities surrounding future Federal Reserve policies and the critical approaches investors should adopt in light of economic uncertainty. Green emphasizes the need for strategic asset allocation amid an ever-shifting financial backdrop.
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insights INSIGHT
Innovative High Yield Strategy
Mike Green's high yield ETF strategy leverages synthetic exposure and credit hedges to smooth credit spread impacts.
This approach delivers consistent outperformance across various credit market cycles.
insights INSIGHT
Passive Investing is Not Passive
Passive investing resembles a systematic, algorithmic process requiring trading with inflows and outflows.
This dynamic creates upward valuation pressure due to large passive inflows holding positions.
insights INSIGHT
Passive Market: A Ponzi-Like System
The rise of passive and systematic strategies inflates existing holders' wealth akin to a Ponzi scheme.
Large outflows could trigger market corrections due to overreliance on inflows to sustain valuations.
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This book chronicles the years 146-78 BC, a period marked by the rise of economic inequality, social and ethnic prejudice, and rampant corruption, which ultimately led to the collapse of the Roman Republic. Duncan explores how men like Marius, Sulla, and the Gracchi brothers set new precedents that undermined the traditional principles of the Republic, leading it towards destruction. The book also draws parallels between the decline of the Roman Republic and contemporary political issues, highlighting the importance of maintaining democratic norms and addressing social and economic inequalities.
Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene & Paul SweeneyMay 7th, 2025 Featuring: 1) Mike Green, Chief Strategist at Simplify Asset Management, joins for an extended discussion on the outlook for equities, what's behind the jobs report figures, the "ETF-ification" of the market, and talks about why he believes the "obsession" with inflation is overblown. US stock futures rose and the dollar gained as China and the US prepared to hold their first confirmed trade talks since President Trump unleashed his global tariff war. 2) Christel Rendu de Lint, co-CEO at Vontobel Asset Management, joins to discuss the global economic outlook amid the tariff environment and favorable asset classes post-tariff announcement. With China and the US preparing for trade talks, the meeting will focus on de-escalation rather than reaching a deal, and Treasury Secretary Scott Bessent said the current tariff rates aren’t sustainable. 3) Frances Donald, Chief Economist at RBC Capital Markets, on slower growth and higher prices in the US economy. The Federal Reserve’s meeting on Wednesday is next up for investors, with traders looking for clues on how soon the central bank could embark on policy easing and how deep the rate-cutting cycle might be. 4) Vishal Khanduja, Head of Broad Markets Fixed Income at Morgan Stanley Investment Management, on why today's Fed meeting won't be about a rate move, but decoding the Powell puzzle. US Treasuries slipped ahead of the Federal Reserve's interest-rate decision, with investors betting on a slower pace of monetary easing due to data suggesting economic resilience. The Fed's decision and comments from Chair Jay Powell to be closely scrutinized for insight into officials' interpretation of recent data. 5) Lisa Mateo joins with the latest headlines in newspapers across the US, including a WSJ story on high-schoolers with $70,000-a-year job offers and the FT's story on sandals in the workplace.Eric Mollo
Bloomberg Surveillance 