Precursor To Mayhem? All-Important Passive Capital Flows Are Faltering | Mike Green

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Jul 6, 2025

Guest

John Llodra

Mike Green, a portfolio manager and chief strategist at Simplify Asset Management, shares his insights on the faltering passive capital flows that have been fueling the stock market. He discusses how changing economic conditions and administration policies could reshape future markets. Alongside Mike Preston and John Llodra from New Harbor Financial, they dive into the risks of complacency in passive investing and the implications of the gig economy on traditional employment metrics. They also highlight strategies for navigating this complex financial landscape with informed decision-making.

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INSIGHT

Passive Flows Are Flattening

Passive capital flows, the 'giant mindless robot', are flattening and may turn down.
This weakening correlates with rising unemployment and could signal market strain.

INSIGHT

Europe's Capital Shift Threatens US

European investors reallocating to their own markets could reduce US market inflows.
This shift may impact American stock market's historical outperformance.

INSIGHT

Gig Work Masks Unemployment

Gig economy workers often avoid unemployment claims by working flexibly with apps like Uber.
This distorts traditional unemployment metrics and affects labor market perception.

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When you're uncertain, they say to seek the counsel of those smarter than you.Well, amongst the many experts I interview on this channel, Michael Green is definitely in the top cohort intellectual horsepower-wise.Mike is portfolio manager & chief strategist at Simplify Asset Management. And today, we'll tap his latest thinking on the stock market, the credit markets, the economy, and where the new Administration's policies are taking us.Mike is one of the top experts on how passive capital flows (aka the "giant mindless robot") have been propelling stocks to record levels of (over?)valuation.Well, for the first time in a long time, we're starting to see those passive inflows falter.

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