Why Passive Investing Could End Badly

Michael Green argues that “passive” investing is anything but hands-off—it’s an algorithmic capital funnel that supercharges big-caps, starves smaller stocks, and primes markets for nasty shocks (think Volmageddon). He unpacks why Sharpe’s neat arithmetic breaks under real-world rebalancing, how aging investors skew risk appetite, and why market stress can flip from deflationary to inflationary surprises.

To “doom-proof” your portfolio, Green recommends tilting into cash-flowing assets—like overlooked long-duration/TIPS and municipals—and diversifying beyond mega-caps. He also cuts through crypto’s doom-and-gloom vibes to highlight its real edge: tokenized, programmable securities that could fix TradFi’s outdated paper plumbing.

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