This Isn’t 1999 or 2007 — The Passive Bid Changed The Market Forever | Bill Fleckenstein

Passive investing flows from index funds and ETFs mechanically deploy capital regardless of valuation, creating a persistent upward market force disconnected from fundamentals.

Federal Reserve liquidity injections and QE policies reinforce passive inflows, creating a structurally bullish environment driven by flows rather than traditional macroeconomic variables.

Labor market deterioration causing a shift from worker contributions to retiree withdrawals is the primary risk that could break the passive bid and reverse market trends.