The shift to passive is creating massive bubbles in the equity market. Because information-driven investors are overwhelmed by price-insensitive buyers, price no longer converges towards value.

1 – Vanguard, Blackrock, and StateStreet own a fifth of the U.S. stock market.

2 – REITs are the sector most over-owned by index fund; tech and the FAANGs are under-owned by index funds.

3 – Flows into tech ETFs have soared in the past two years, creating a demand glut for tech shares. 

4 – This big tech share shortage is being solved by massive option issuance. Eventually, the “passive bubble” should transfer wealth from index fund investors to tech employees and insiders.

Download Vincent Deluard's Market Intelligence Report:

Download Now


Vincent Deluard Market Intelligence:

Media RoomFree Trial RequestLogin

Vincent Deluard   

Vincent Deluard, CFA, is the newest member of the Market Intelligence team within the BD Division of INTL FCStone Financial Inc. A prolific market commentator who’s often quoted in the Financial TimesWall Street JournalBarronsReal Vision, and Reuters, Mr. Deluard earned the Euromoney Padraic Fallon Editorial Prize for his in-depth study of the investment opportunities offered by the European debt crisis in 2013. Prior to joining INTL FCStone Financial Inc., Vincent served as Europe Strategist for Ned Davis Research Group, where he authored weekly publications on European markets, and designed proprietary trading models that combined fundamental, technical and macro indicators to identify major investment themes and market trends.

Vice President – Global Macro Strategy

© 2018

 INTL FCStone Inc. All Rights Reserved

INTL FCStone Financial Inc. is wholly owned subsidiary of INTL FCStone Inc. The INTL FCStone Inc. group of companies provides financial services worldwide through its subsidiary entities. Such financial services include, but are not limited to, physical commodities, securities, derivatives, risk management, global payments and foreign exchange in accordance with the respective regulations in the jurisdictions where such financial services are provided and applicable law. INTL FCStone Financial Inc. (IFCF) is a member of FINRA/SIPC/NFA and MSRB registered. IFCF is registered with the U.S. Securities and Exchange Commission (SEC) as a Broker-Dealer (BD) and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. References to securities trading are made on behalf of the BD Division of IFCF and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of IFCF.

Trading OTC products or swaps, exchange-traded derivatives such as futures and options, and securities involves substantial risk of loss and is not suitable for all investors. This material does not constitute investment research, nor is this an offer to buy or sell any derivative or security. Nor does it take into account your particular investment objectives, financial situations, or needs and does not create a binding obligation on any of the INTL FCStone Inc. group of companies to enter into any derivative or security transaction. This material does not contain all of the information that may be material to inform your decision to enter into any transaction. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you and are directed to seek professional advice in connection with trading derivatives or securities.

The INTL FCStone Inc. group of companies does not give warranty nor guarantee the completeness or accuracy of the information and may not be deemed in any way as representation, advice, solicitation, or inducement to enter in to any contract, investment, or arrangement by any party, whether or not such party is known, unknown, or a client of any entity within the INTL FCStone Inc. group of companies. INTL FCStone Inc. fully disclaims and shall be held harmless relating to all and any liability, howsoever arising, that may be incurred or suffered by any party arising from the reliance, use, misuse, reproduction (in part or whole thereof) and dissemination of the information herein. All information provided on this site is provided "as is" and "as available". The INTL FCStone group of companies shall have no liability for any misstatement, omission of fact or any opinions expressed in any materials contained on this site and disclaim all express or implied warranties that site-based services will be uninterrupted, timely, or error-free or will meet your requirements and make no warranties that information provided will be correct or complete. The INTL FCStone Inc. group of companies shall not be liable for any direct or indirect loss arising out from your use or inability to use this site or for your reliance on any information provided on this site.

The European View

Top down macro analysis of European markets, focusing on countries, sectors and styles.

Global Macro

Rates, currencies, and the macro trends that affect every other investment

Flow Report

A pure supply and demand view of the world: how many securities are being sold, and how much money is trying to buy them?

Intelligent Quant

 A skeptical view of the latest quant “innovations”, and properly-backtested systematic strategies

Securities Market Intelligence Offering:

Securities Market Intelligence

Fix the following errors: