Shorting no longer works well because the passive bid acts like a tractor beam hauling stocks higher, so markets no longer discount trouble in advance—stocks gap down all at once on bad news (e.g. Texas Instruments down 12%) rather than declining gradually, making short risk-management nearly impossible.
causalpending
Speaker
Bill FleckensteinEvidence Quote
“Things companies market market in individual stock prices would discount trouble. But, you know, that was before the passive bid was as big as it is. Um, so the market doesn't discount much anymore.”
Source
Bill Fleckenstein: We've Gone Past The Point Of No Return, Only An Epic Crisis Can Fix— The Julia La Roche ShowCreated: 6/18/2026, 1:58:45 PM
My Notes
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