The Passive Investing Bubble No One Talks About

Contrarian strategist Michael Green argues that “passive” investing is anything but passive—it’s a policy-driven, flow-driven machine that floods mega-caps with capital, starves small-caps, and sets us up for market “non-clearing” shocks. He breaks down why Sharpe’s neat arithmetic clashes with real-world rebalancing, revisits lessons from “Volmageddon,” considers how aging investor cohorts and stress cycles could actually spark deflation before inflation, and warns passive investors why their portfolios might be in for a rude awakening.

Green’s antidote? A “doom-proof” portfolio packed with cash-throwing assets—think overlooked duration/TIPS and municipals—plus real talk on crypto’s true value: programmable, tokenized securities that could finally unstick TradFi’s paper plumbing.

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