“John, are the hundreds of billions flowing into index funds at the expense of all other investment strategies creating existential problems for financial markets?”

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Mike Green Educates Barry Ritholtz on the Major…

The man who has done more to expose the nonsensical foundations of passive investing, Mike Green, is at...

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27 Mar 2024

Emergency Vanguard 401(k) Hardship Withdrawals Hit a Record…

Vanguard 401(k) Hardship Withdrawals Increase to 3.6% of Client Base in 2023 Signs of economic distress are building,...

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19 Mar 2024

Bloomberg Starts to See The Major Flaws in…

John Authers of Bloomberg Admits Major Flaws in the Passive Investing Model John Authers, senior editor for markets...

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07 Mar 2024

INTRODUCING Passive Parabellum

Mike Green Educates Barry Ritholtz on the Major Flaws in Passive Investing

The man who has done more to expose the nonsensical foundations of passive investing, Mike Green, is at it again. The portfolio manager at Simplify Asset Management and former investment advisor to Silicon Valley tycoon Peter Thiel recently responded to pushback on his...

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27 Mar 2024

Emergency Vanguard 401(k) Hardship Withdrawals Hit a Record High in 2023

Vanguard 401(k) Hardship Withdrawals Increase to 3.6% of Client Base in 2023 Signs of economic distress are building, even though the initial jobless claims report released by the U.S. Department of Labor still shows that layoffs are subdued. However, there is significant debate...

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19 Mar 2024

Bloomberg Starts to See The Major Flaws in Passive Investing

John Authers of Bloomberg Admits Major Flaws in the Passive Investing Model John Authers, senior editor for markets at Bloomberg and a Bloomberg Opinion columnist wrote recently that there is a "strong case" that indexing is distorting market prices. This is refreshing even...

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07 Mar 2024

Passive Ponzi: A Dollar Into Index Funds Creates $17 of Market Value…

The Passive Ponzi: We have continually highlighted the work of Xavier Gabaix (Harvard University) and Ralph S. J. Koijen (University of Chicago, Booth School of Business) here on Passive Parabellum. Their ground-breaking 2021 paper, In Search of the Origins of Financial Fluctuations: The...

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24 Feb 2024

CFA Enrollment Plummeting as Analyzing Securities is Becoming Futile

The CFA or Chartered Financial Analyst designation has long been the gold standard for professionals in the investment industry. To earn the CFA credential, candidates must complete a three-level program covering topics such as ethical and professional standards, investment tools, financial statement analysis,...

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14 Feb 2024

New Academic Paper Adds to Evidence that Passive ETFs are Distorting the…

Continuing our recent coverage of passive ETFs distorting the stock market, a new academic paper by three German researchers convincingly argues that an increase in passive ownership is having a dramatic effect on the functioning of the stock market. Since cash flowing into...

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25 Jan 2024

Russell 2000 Index Returns Driven By Passive ETF Flows

Adding to the copious evidence that passive ETF flows and index fund flows are distorting the market, Tier1 Alpha recently noted the stark contrast between the performance of the Russel 2000 index before and after the creation of the Russel 2000 ETF, ticker...

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15 Jan 2024

401(k) Hardship Withdrawals Rising As Americans are Under Stress

The New York Post recently reported that Americans are raiding their retirement accounts to cope with inflation. Fidelity Investments said that 2.3% of workers withdrew money from their 401(k) or IRAs in the last quarter. This number increased from 1.8% of those surveyed...

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19 Dec 2023

Passive Investing and the GLP-1 Weight Loss Boom

What does passive investing have to do with the GLP-1 weight loss craze sweeping the globe? Well, the Wall Street Journal reports the manufacturer of the blockbuster drugs Ozempic and Wegovy inadvertently highlights the distortions caused by a similarly popular phenomenon: index investing....

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29 Nov 2023