Skip to main content

Why Passive Investing Could Trigger The Next Major Crash | Mike Green

Adam Taggart | Thoughtful Money® May 20, 2026

Summary

Passive investing dominance creates a dangerous self-reinforcing feedback loop that could trigger a major market crash.

Markets approach a critical tipping point as passive share nears 65%, leaving insufficient active capital to stabilize volatility.

Investors must prepare for structurally higher volatility and sharper declines as traditional buy-the-dip strategies may fail.