
Market chaos: Forget coronavirus, worry about passive investing
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While the coronavirus can take credit for much of the volatility we’ve experienced on the markets lately, it’s not the only issue. For years, the steady rise of passive investing may have been creating unexpected and important financial market vulnerabilities. In this podcast, featuring content from the Bloomberg Odd Lots podcast, we take a dive into how passive money has been fuelling the spike in technology stock prices and why that’s a real problem for markets. Even though passive investing is the best strategy for most investors, added up, passive money may be undoing the rationale for the stock markets themselves.