Can stocks really underperform for bonds decades?! In this special Alpha Architect Round Up celebrating 3,000 subscribers, we sit down with Meb Faber to dig into surprising market truths, diversification challenges, and why buy-and-hold doesn’t always work outside the U.S.
In this episode, we discuss:
• Why stocks can stagnate or trail other assets like bonds and gold for decades
• The hidden role of farmland and housing in the global portfolio
• Vanguard’s surprising call for international bonds
• Trend-following: misunderstood or just out of favor?
• The pitfalls of institutional investing and why complexity often loses
• Behavioral mistakes investors keep repeating (performance chasing, sitting on cash)
• Which countries and strategies are “totally not crushing it” today—but might be tomorrow
Follow Meb's summer series "20 Things You May Not Know About Markets (or That Might Surprise You)": https://x.com/MebFaber/status/1936136442079855067
Follow the Alpha Architect Team and Meb on X:
Wes Gray, PhD: https://x.com/alphaarchitect
Jack Vogel, PhD: https://x.com/jvogs02
Ryan Kirlin: https://x.com/RyanPKirlin
Jose Ordoñez Jr: https://x.com/JOrdonezJr
Meb Faber: https://x.com/MebFaber
Subscribe for more insights on diversification, market trends, and smart investing strategies!
For more educational resources, visit:
https://www.alphaarchitect.com
Disclosures:
https://www.alphaarchitect.com/disclosures
All content for The Alpha Architect Round Up is the property of Alpha Architect and is served directly from their servers
with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.
Can stocks really underperform for bonds decades?! In this special Alpha Architect Round Up celebrating 3,000 subscribers, we sit down with Meb Faber to dig into surprising market truths, diversification challenges, and why buy-and-hold doesn’t always work outside the U.S.
In this episode, we discuss:
• Why stocks can stagnate or trail other assets like bonds and gold for decades
• The hidden role of farmland and housing in the global portfolio
• Vanguard’s surprising call for international bonds
• Trend-following: misunderstood or just out of favor?
• The pitfalls of institutional investing and why complexity often loses
• Behavioral mistakes investors keep repeating (performance chasing, sitting on cash)
• Which countries and strategies are “totally not crushing it” today—but might be tomorrow
Follow Meb's summer series "20 Things You May Not Know About Markets (or That Might Surprise You)": https://x.com/MebFaber/status/1936136442079855067
Follow the Alpha Architect Team and Meb on X:
Wes Gray, PhD: https://x.com/alphaarchitect
Jack Vogel, PhD: https://x.com/jvogs02
Ryan Kirlin: https://x.com/RyanPKirlin
Jose Ordoñez Jr: https://x.com/JOrdonezJr
Meb Faber: https://x.com/MebFaber
Subscribe for more insights on diversification, market trends, and smart investing strategies!
For more educational resources, visit:
https://www.alphaarchitect.com
Disclosures:
https://www.alphaarchitect.com/disclosures
The Less-Efficient Market Hypothesis | October 2024 Round Up
The Alpha Architect Round Up
51 minutes 31 seconds
1 year ago
The Less-Efficient Market Hypothesis | October 2024 Round Up
Submit your questions! Email: jose@alphaarchitect.com
For more educational resources, check out the Alpha Architect blog. www.alphaarchitect.com/subscribe
Follow us on X:
Wes Gray, PhD: x.com/alphaarchitect
Jack Vogel, PhD: x.com/jvogs02
Ryan Kirlin: x.com/RyanPKirlin
Jose Ordoñez Jr: x.com/JOrdonezJr
Welcome to the Alpha Architect Round Up. Every month the Alpha Architect crew gets together and talks financial trends and news with an evidence-based outlook. This month we talk about the AQR's Cliff Asness's new paper "The Less-Efficient Market Hypothesis" and review his claims regarding the market becoming less efficient over the past 30 years, valuation spreads as an indication of inefficiency, speeds vs. accuracy of markets, indexing, low interest rates and social media contagion. Additionally, we answer questions on tactical asset allocation, permanent tail hedging and equity contracts in managed futures.
0:00 - Intro/ 2k Subs!
1:58 - Valuation Spreads & Market Efficiency
7:29 - Speed vs. Accuracy
20:26 - Indexing & Efficiency
24:22 - Low Interest Rates & Efficiency
30:35 - Social Media & Efficiency
39:56 - Tactical Asset Allocation
44:54 - Permanent Tail Hedging
48:05 - Equity Contracts in Managed Futures
51:21 - Outro
Sources: Asness, Cliff S., The Less-Efficient Market Hypothesis (August 30, 2024). 50th Anniversary Issue of The Journal of Portfolio Management, Forthcoming.
Disclosures: alphaarchitect.com/disclosures.
The Alpha Architect Round Up
Can stocks really underperform for bonds decades?! In this special Alpha Architect Round Up celebrating 3,000 subscribers, we sit down with Meb Faber to dig into surprising market truths, diversification challenges, and why buy-and-hold doesn’t always work outside the U.S.
In this episode, we discuss:
• Why stocks can stagnate or trail other assets like bonds and gold for decades
• The hidden role of farmland and housing in the global portfolio
• Vanguard’s surprising call for international bonds
• Trend-following: misunderstood or just out of favor?
• The pitfalls of institutional investing and why complexity often loses
• Behavioral mistakes investors keep repeating (performance chasing, sitting on cash)
• Which countries and strategies are “totally not crushing it” today—but might be tomorrow
Follow Meb's summer series "20 Things You May Not Know About Markets (or That Might Surprise You)": https://x.com/MebFaber/status/1936136442079855067
Follow the Alpha Architect Team and Meb on X:
Wes Gray, PhD: https://x.com/alphaarchitect
Jack Vogel, PhD: https://x.com/jvogs02
Ryan Kirlin: https://x.com/RyanPKirlin
Jose Ordoñez Jr: https://x.com/JOrdonezJr
Meb Faber: https://x.com/MebFaber
Subscribe for more insights on diversification, market trends, and smart investing strategies!
For more educational resources, visit:
https://www.alphaarchitect.com
Disclosures:
https://www.alphaarchitect.com/disclosures
