Thoughtful Money with Adam Taggart Stock Market Now Hostage To Passive Capital Flows | Mike Green
12 snips
Nov 16, 2025 
In this enlightening conversation, Mike Green, Portfolio Manager and Chief Strategist at Simplify Asset Management, shares insights into the impact of passive capital flows on the stock market, arguing it's a primary driver of equity gains. He raises concerns about private markets and their potential spillover effects on the broader economy and pensions. Green also discusses the risks of AI stocks facing a repricing similar to the dot-com bubble, the societal consequences of concentrated wealth, and the necessity for regulatory reforms in an era of extractive capitalism.
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Private Markets May Be Mispriced
- Private equity and private credit marks likely overstate asset values versus comparable public companies.
- Declining distributions and limited liquidity suggest real collateral values are lower than reported.
Turning On The Light Exposes Private Credit Risks
- Scrutiny in private credit exposes frauds, weak collateral, and covenant gaps.
- Credit 'cockroaches' discovery can prompt creditor fights and reduce available financing.
Policy Uncertainty Raises Bailout Risk
- A major private-credit or private-equity collapse could spur government bailouts to avoid employment losses.
- Policy reaction uncertainty increases systemic risk assessment.
