A dollar of net inflow into Nvidia raises its market cap by roughly a hundred dollars, according to Michael Green. His conclusion: stock prices have almost nothing to do with fundamentals anymore. @profplum99, former portfolio manager and chief strategist at Simplify Asset Management and now Founder and CIO, Tier1 Asset Management, spent years running macro strategies at Peter Thiel's hedge fund before building the research that made him one of the most cited critics of passive investing on Wall Street. His argument is not that passive is bad for the average saver. It is that the entire market has quietly stopped functioning the way most investors think it does. Here is how he explained the math on my podcast: "The average impact of a dollar into the market was five dollars. That's five hundred times more than what the original theory predicted. My estimate is that for the largest, most inelastic stocks, those multipliers are now approaching one hundred. A dollar into Nvidia is raising Nvidia's market cap by about a hundred dollars." Every dollar that lands in a 401k on payday gets allocated by formula, not judgment, into whatever index the target date fund happens to hold. Nobody is asking if the price is fair. They are buying because the paycheck arrived. As passive share grows, there are fewer active investors left to sell into that flow and correct the price, so the same dollar moves the stock further than it used to. Green's own trading has adapted to this: not asking what a company is worth, but tracking where the flow is forced to go next. The market has not stopped pricing risk. It has started pricing something else entirely, and most investors are still reading the old map. We’d like to thank @AlphaSenseInc for sponsoring this episode! Full episode below 👇 youtu.be/5i3TIaEHn6A