Great Podcast

I’m a big fan of Mike Green. The guy flat out understands finance in a quantitative way. He has many videos on youtube but I ran across a part 1 and 2 series that is particularly insightful regarding how markets today are different than markets of yesteryear. If you have a spare couple hours I recommend

I added this as well. This video describes in a more elegant way what my concern is regarding passive investing as it becomes a bigger and bigger fraction of the market. Instead of using risk for the price discovery of when an asset becomes liquid, the market is just a binary switch. The binary is buy at any price, sell at any price. It works as long as buying and selling is slow and small but if the volume becomes massive the price drops exponentially fast and then the order is filled at any price.

This is the scariest video I’ve ever seen. If you can watch only one watch this one. I think COVID-19 is that event that turns off corporate buyback and will promote price collapse.

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