G'Day Russell, retail here. I have seen your previous posts on Mike G/passive.
Maybe a corollary of passive, prior to ETF dominance, in times of elevated PEs, the marginal discretionary dollar might have flowed back into bonds, normalising PEs. That discretionary money is now old, lazy, sitting in a stonk ETF reveling in inherent inertia.
I have been thinking about Michael Green's passive argument. I think it makes more sense when applied to bond markets rather than equity markets. Will write a post soon.
Or are markets trying to price potentially
upcoming AI led deflation forces…?
Interesting... maybe I guess.
G'Day Russell, retail here. I have seen your previous posts on Mike G/passive.
Maybe a corollary of passive, prior to ETF dominance, in times of elevated PEs, the marginal discretionary dollar might have flowed back into bonds, normalising PEs. That discretionary money is now old, lazy, sitting in a stonk ETF reveling in inherent inertia.
I have been thinking about Michael Green's passive argument. I think it makes more sense when applied to bond markets rather than equity markets. Will write a post soon.