TIP688: Long-Term Market Cycles w/ Rob Arnott
Listen to the original audio · Transcribed with NVIDIA Parakeet · Why times can differ in your player
You're listening to TIP. On today's episode, I'm joined by Rob Arnott. Rob is the founder and chairman of the Board of Research Affiliates. Over his career, Rob has endeavored to bridge the worlds of academic theorists and financial markets. During that journey, he's pioneered several unconventional portfolio strategies that are now widely applied in the investment industry, as over $156 billion are invested in strategies that were developed by his firm.
Most notably, he developed what's known as the Fundamental Index, also known as RAFI, which weights companies on business fundamentals rather than market capitalization. Over the past 20 years, the fundamental index strategy has exceeded the return of the S<unk>P 500 by 2% per year. With the Magnificent 7 now comprising 33% of the S<unk>P 500, I'm always looking for sound investment strategies that don't rely on the continued outperformance of just a few of the market's biggest names. During this episode, Rob and I cover the source of the fundamental index's outperformance, how to calculate the equity risk premium, why short-term forecasts are impossible to project accurately, but long-term forecasts are not, where Rob believes we're at in the value cycle,
The next strategy in why companies that get removed from an index tend to outperform those that get added and so much more. With that, I bring you today's episode with Rob Arnott. Since 2014, and through more than 180 million downloads, we've studied the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Clay Fink.
We already have this episode, so unlocking it is cheap and permanent: the full transcript (61 minutes, 9,844 words), segment and word-level timestamps, and .txt, .srt, .vtt and word-level JSON downloads, as many times as you like, forever.
No account needed, we create one from your checkout email. With credits it is 1 credit; packs start at 5 episodes for $3.49, and monthly plans are cheaper still.