In this episode of the Keiser Report, Max and Stacy look at ‘reflexivity’ and whether or not increased stock prices are themselves pushing rates up as buyers chase the markets higher without any consideration of fundamentals. They also consider the rise of passive index funds – the opposite of value investors, as passive investors don’t look at any fundamentals but merely buy a basket of the highest-performing shares in whichever sector they are investing. In the second half, Max continues his talk with Egon von Greyerz of GoldSwitzerland.com about value investors like Warren Buffett sitting on huge piles of cash while passive index funds gobble up the market. They also discuss the latest developments in the gold sector.
