Jesse Felder: Passive Investing Bubble Driving the Stock Market Bubble…And It Will Get Hammered?

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During this in depth, hour plus long interview, Jason asks Jesse questions about:
1) Why do you think respected money managers with good long term track records like Hugh Hendry and David Einhorn have either had to close down their funds recently or are having record amounts of withdrawals? Is it because they are struggling to adapt to the rapidly changing global macro picture because of central banks or do you think there’s other factors involved like how passive investing and ETFs have become extremely popular now?

2) Do you think passive investing and ETFs are in a bubble in terms of the assets under management and their popularity? There seems to be an attitude from people on Main St and non-financial professionals that they can do well in investing simply by buying index funds and that professional money managers are no longer needed.

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3) As someone who focuses on fundamentals and value investing in their approach to investing and allocating capital, are you surprised by how many years the value investing methodology has been under performing for?

4) Since we are more than halfway through 2018 now, what do you think are the most important things that people should pay attention to for the rest of the year? (Oil price, US Dollar Index rally, Fed QT going up more in October, etc)

5) Are central bankers from the Fed, ECB, BOJ and BOE willing to prick the everything bubble?

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6) Do you think that the 2 largest economic landmines now that the market is worried about the most in the short term are European banks and emerging markets?

7) Are there any specific sectors or industries where you think there may be good values on quality companies right now?
8) What do you think about the warnings that Jeremy Grantham, Mark Mobius, Paul Tudor Jones, etc have been giving about an upcoming US stock market crash? Do you think that they were more willing to speak out because they have enough money now and don’t need to worry about losing their job and the ability to provide for their family?

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