Making Markets
Episode 43 The Complexities of Modern Markets
Making Markets

Episode 43: The Complexities of Modern Markets

Making Markets

Episode 43

The Complexities of Modern Markets

David Nadig is an ETF industry pioneer and the CEO of ETF.com. We cover the impact of passive investing on the market, passive investing in private markets, and the future of capitalism.

Show Notes

(00:00:00) Welcome to Making Markets

(00:01:25) The Passive vs Active Debate

(00:03:02) Impact of Passive Investing on Market Pricing

(00:04:02) Flow and Market Cap Multiplier Effect

(00:07:20) Daily Leverage and Market Volatility

(00:10:35) Uninformed vs Informed Traders

(00:19:19) Opportunities and Risks in Passive Investing

(00:21:52) Opportunities in Forced Selling and Crisis

(00:22:17) The Shift from Public to Private Markets

(00:24:46) Challenges in Private Equity Liquidity

(00:29:46) The Broken System of Capitalism

(00:35:30) Insurance Problems and Government Role

(00:37:02) Thoughts on Capitalism's Future

The Complexities of Modern Markets

Introduction

Eric
My guest this week is David Nadig. David is the financial futurist for ETF trends and ETF database and has had over 25 years of ETF experience. We start off by acknowledging the debate over active and passive investing. David and I discuss the potential dangers of passive funds on market discovery, the inelastic market hypothesis and the effects of massive inflows into index funds.

This episode explores how leverage and options trading interact with these market dynamics and the broader implications on capitalism and market structures. Please enjoy my conversation with David Nadig.

Eric
David, I’m excited to do this finally. I think a great place to start would be a Twitter fight because what's more fun than people yelling at each other on the Internet. And recently, Professor Plum -- I think he called it, what was the word, acerbic?

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