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 GreenEvidence 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 Flaw— Excess ReturnsCreated: 6/18/2026, 1:59:25 PM
My Notes
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