#084 Michael Green On Passive Investing Creating Distortions In The Market Right Now

Michael Green (@profplum99), Chief Strategist and Portfolio Manager for Simplify Asset Management, joins Julia La Roche on episode 84 for a wide-ranging conversation on the economy and market. In this episode, Mike Green breaks down some of the implications of systematic and passive investment strategies and how they lead to the current market phenomena. Michael has been noted for his work as a market theoretician and financial media participant. He is a graduate of the University of Pennsylvania and a CFA holder. Follow Mike on Twitter: https://twitter.com/profplum99 Read Mike’s Substack: https://www.yesigiveafig.com/ 0:18 When are we going to see a recession?  1:06 In the recession camp  2:40 Labor is bifurcated  4:55 Student loan debt  8:00 Implications of AI  13:55 Markets and the implications of passive investment strategies  18:10 Creating an asset bubble  21:57 What happens when the selling starts?  24:00 Driving a car uphill with no brakes  28:20 Growth of passive  33:58 Inelasticity of the markets  36:20 The Fed  42:22 Operating off fantastically outdated theories  45:00 Downside of these strategies  49:30 Narratives in the markets  54:00 Parting thoughts