I was wondering if you guys had given any thoughts to Michael Burry’s statement about passive fund investing in Bloomberg late last year: https://www.bloomberg.com/news/articles/2019-09-04/michael-burry-explains-why-index-funds-are-like-subprime-cdos
I looked into this a bit (mostly to understand what it actually meant because reading the article alone, I wasn’t completely sure), and believe he has legitimate concerns. Would love to hear your thoughts on his observations/theories on passive investment & the impacts of removing price discovery from passive ETFs. If you’ve already discussed this in a previous podcast, would you mind directing me to it!
Thanks guys, keep up the huge effort.