Is the Biggest Investing Solution Becoming the Market's Biggest Problem?

If markets no longer price value, then what's actually setting the price?

Raise Your Average hosts Pierre Daillie and Adam Butler sit down with Michael Green, Chief Strategist and Portfolio Manager at Simplify Asset Management, for a deep dive into the passive investing thesis he has spent over a decade researching, defending, and stress testing.

Green argues that trillions of dollars flowing automatically into index funds via 401(k)s, RSPs, and defined contribution plans have created a market where price no longer reflects judgment about value. He walks through the mechanics of the "inelastic market hypothesis," the outsized role of leveraged and levered sector ETFs like SOXL, the Grossman-Stiglitz framework and why its core assumptions no longer hold, and why active and value investing have become structurally disadvantaged in the current regime.

The conversation also covers the 2026 macro backdrop of a US-Iran conflict, an oil shock, and equities at all-time highs despite it, the risk of a passive "end stage," and where genuine diversification (like managed futures) still fits. It's a candid, occasionally combative, and consistently illuminating discussion for anyone trying to understand why markets are behaving in ways that don't match historical patterns.