facebookAre we really in a passive investing bubble? - Seedly

Lim Chun Long Jimmy

Co-founder at PolicyWoke (Traded Endowment Policies)

16 Apr 2020

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Are we really in a passive investing bubble?

Michael Burry, one of the first investors to call and profit from the subprime mortgage crisis, is seeing a bubble in passive investing. What are your thoughts on this?

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Discussion (2)

Kelly Trinh

19 Nov 2019

Backoffice technical at financial services firm

Not even sure what to make of this - subprime is a specific class of assets and can make a call on mispricing and profit but passive investing is more of a style/approach into different assets and so underlying reasons for a bubble wouldn't be related to subprime.

Now whether too money into ETF/index funds leading to not enough people looking into valuation is a valid question with some supporters but it is still not very widely held belief and not really tested (and hard to imagine how to test)

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