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Michael Green: The Hidden Ponzi Bubble, Markets Partying Like ’99, & Where To Invest Now

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Jul 23, 2025
Michael Green, Portfolio Manager and Chief Strategist at Simplify Asset Management, shares insights on the current market landscape. He discusses how passive investing is inflating a Ponzi-like bubble and compares today's AI boom to the dot-com frenzy. Green warns of a potential recession, hidden behind optimistic market highs, and highlights the advantages of investing in bonds, particularly TIPS. He expresses concerns over the decline of small businesses amid growing corporate power, illuminating the shifting dynamics of modern economies.
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INSIGHT

Passive Investing Fuels Market Bubble

  • Passive investing has created a bubble by distorting market prices and undermining price discovery.
  • Money flows into passive funds push prices higher without sellers, driving extraordinary volatility and high valuations.
INSIGHT

AI Boom Mirrors Dot-Com Bubble

  • AI boom mirrors the late 1999 internet bubble in hype and speculative investment.
  • Excess investment is likely, as efficiency improvements reduce long-term demand for AI infrastructure.
INSIGHT

Equities as Speculative Casino

  • Equities today resemble a speculative casino rather than stable investments.
  • S&P 500 ETF holders mostly own overpriced speculative tickets with very low dividend yields.
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