Because passive inflows have a large multiplier effect, the same mechanism operates in reverse: when aggregate selling appears for any reason (even just sentiment), prices should fall with the same accelerated magnitude, producing a 'volatility-up, volatility-down' world.

causalpending

Speaker

Mike Green

Evidence Quote

you would expect the same kind of reaction on the downside

Source

The Trillion Dollar Trap | Mike Green on Passive Investing's Fatal Design FlawExcess Returns
Created: 6/18/2026, 1:59:25 PM

My Notes

Loading notes...