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Michael Green, chief strategist and portfolio manager at Simplify Asset Management, references the Grossman-Stiglitz theory about the impossibility of fully informationally efficient markets.
He points out that as passive share within markets grows, this fundamental challenge becomes more apparent.
Green has previously identified levered ETFs, such as SOXL, as a potential trigger for volatility events. He has also compared chip firms' approach to AI memory supply to oil companies, indicating that manufacturers are likely to hold firm on capacity limits. Green continues to monitor structural factors that may contribute to market risks.