UK Markets close in 1 hr 41 mins

The Big Short’s Michael Burry Sees a Bubble in Passive Investing

Aug.28 -- Michael Burry shot to fame and fortune by betting against mortgage securities before the 2008 crisis, a trade immortalized in “The Big Short.” Now, Burry sees another contrarian opportunity emerging from what he calls the “bubble” in passive investment. As money pours into exchange-traded funds and other index-tracking products that skew toward big companies, Burry says smaller value stocks are being unduly neglected around the world. Luke Oliver, head of index investing for the Americas at DWS, talks with Bloomberg's Taylor Riggs, Eric Balchunas and Sarah Ponczek about Burry's comments, recent market volatility, and ETF flows, especially into gold funds.