SI402: Why Markets Can’t Stop Trending ft. Richard Brennan

What happens when markets stop behaving like machines and start behaving like living systems? In this episode, Richard Brennan joins Niels to explore passive investing, complex adaptive systems, volatility suppression, and the hidden forces reshaping modern market structure. From structured products and reflexive flows to demographics, trend following, and the fragile illusion of equilibrium, this conversation asks whether markets are becoming more unstable precisely because investors believe they have become safer. A thoughtful and layered discussion about why price discovery may be weakening, why trends persist, and why systematic strategies may be more relevant in a world increasingly shaped by feedback loops. ----- 50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE ----- Follow Niels on Twitter , LinkedIn , YouTube or via the TTU website . IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here . And you can get a free copy of my latest book “ Ten Reasons to Add Trend Following to Your Portfolio ” here . Learn more about the Trend Barometer here . Send your questions to info@toptradersunplugged.com And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast. Follow Rich on Twitter . Episode TimeStamps: 00:00 - Introduction to the episode and overview of today’s discussion 02:22 - Richard Brennan breaks down passive investing through the lens of complex adaptive systems 06:51 - What “complex adaptive systems” actually means in markets 14:53 - Why passive investing changes market structure without individual investors realizing it 24:06 - Niels discusses structured products, volatility suppression, and market fragility 29:23 - How demographic shifts could eventually reshape passive investing trends 35:37 - Trend following performance update and the TTU Trend Barometer 38:48 - Listener question on variance, volatility, and correlation in systematic trend following 42:04 - The “murmuration” analogy and why markets behave like flocks instead of machines 48:31 - Why equilibrium theory survives despite failing to explain real markets 51:17 - The endogenous engine of markets and the mechanics of reflexivity 57:47 - How trend followers align with the architecture of modern markets 01:03:12 - Why passive investing weakens balancing forces and strengthens trends 01:13:43 - The statistical evidence showing markets structurally trend over time 01:21:18 - Why trend following may become even more effective in the future Copyright © 2025 – CMC AG – All Rights Reserved ---- PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey: 1. eBooks that cover key topics that you need to know about In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here 2. Daily Trend Barometer and Market Score One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here 3. Other Resources that can help you And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here Privacy Policy Disclaimer

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SI402: Why Markets Can’t Stop Trending ft. Richard Brennan is an episode from Top Traders Unplugged with Niels Kaastrup-Larsen | Engaging Conversations with the Top Traders & Investors by Niels Kaastrup-Larsen.

This episode is 01:30:50 long.

This episode was published on May 30, 2026.

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