Passive Capital Flows Are All That Matter For Stocks. Are They Starting To Falter? | Mike Green

Passive capital flows are the primary driver of stock market performance, with $400 billion in mechanical inflows fueling a $10 trillion market cap gain.

Passive share of market ownership has reached 53% and is rising 4% annually, with a dangerous regime shift expected when it hits 65%.

Investors should prepare for a lower return environment in equities and consider long TIPS at 2.7% real yield as a safer alternative.