The majority of recent market impact is driven by mechanical flows from passive investment vehicles and leveraged ETFs rather than fundamental valuation changes; when a buy order is sent to a 2x levered ETF, it mechanically buys two times the Nvidia shares regardless of any assessment of whether that purchase makes economic sense.

causalpending

Speaker

Mike Green

Evidence Quote

I operate off of a model that suggests that the majority of the impact that we're seeing in markets is largely a mechanical function of the way that we've chosen to invest.

Source

Stock Market Leverage Higher than at Any Time in History | Michael GreenWTFinance
Created: 8/12/2026, 6:11:43 PM

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