Valentin Haddad, an Associate Professor at UCLA's Anderson School of Management, dives deep into passive investing's impact on market dynamics. He critiques traditional financial theories, highlighting the Grossman-Stiglitz Paradox, while discussing how passive strategies can distort market efficiency. The conversation explores the evolving landscape of active management and index arbitrage, plus misconceptions about market capitalization and liquidity. Haddad emphasizes the importance of portfolio diversification and adapting investment strategies to individual goals.

Associate Professor of Finance, Valentin Haddad, discusses passive investing, stock market bubbles, and the impact of COVID-19 on investment-grade corporate bonds. Topics include market elasticity, strategic interactions, the rise of passive investing, and the relationship between innovation and stock market bubbles.