by Rishabh Mishra
Sounding the alarm on a fragile U.S. stock market, warning that an unprecedented combination of aging demographics, passive investing and a sudden halt in tech buybacks has created a “coiled spring” primed for a catastrophic crash.
Explosion of passive index funds, which now control over 60% of equity fund assets.
“In 2028, for the first time in its over 3-decade existence, the defined contribution juggernaut driving much of the growth of passive investing turns negative”.
Active ETF investing reached a massive 85.6%.
Rapid evaporation of corporate stock buybacks, which recently exceeded $1 trillion annually. Burry highlights that tech giants are abruptly abandoning share repurchases to fund massive artificial intelligence (AI) infrastructure.
Source: Benzinga
https://finance.yahoo.com/news/michael- ... 40606.html
