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Navigating the World of Multi-Asset Investing with Rob Arnott

Join us for a deep dive into the world of multi-asset investing with Rob Arnott, the founder and chairman of Research Affiliates. In this live podcast recording, Arnott shares valuable insights and cautionary advice for investors in the current market landscape.

The Multi-Factor Arena

⭐Factors and strategies in the multi-factor arena were trading at a premium in 2016.

πŸ“ˆMoney was pouring by the billions every single month into multi-factor strategies.

⚠️Caution was advised due to the factors trading rich relative to their own historical norms.

Value Investing and Market Trends

πŸ“‰Value investing experienced a 37% decline from peak to trough during the global financial crisis.

πŸ”„Value rebounded significantly in 2009 due to rebalancing and extremely low valuations.

πŸ“ŠValue investing has seen periods of sideways movement and crashes, but overall has not reached previous lows.

FAQ

What were the key trends in the multi-factor arena in 2016?

Factors and strategies were trading at a premium, and billions were pouring into multi-factor strategies.

How did value investing perform during the global financial crisis?

Value investing experienced a significant 37% decline from peak to trough.

What cautionary advice was given for the multi-factor arena?

Caution was advised due to factors trading rich relative to their historical norms.

How did value investing rebound in 2009?

Value rebounded significantly in 2009 due to rebalancing and extremely low valuations.

What is the overall trend for value investing?

Value investing has seen periods of sideways movement and crashes but has not reached previous lows.

Summary with Timestamps

πŸŽ™οΈ 0:00The episode of the Compound and Friends podcast features Rob Arnott, the founder and chairman of Research Affiliates.
πŸ“Š 5:45Factors and strategies in the multi-factor arena were trading at a premium in 2016, prompting caution.
πŸ˜” 11:15Value investing has been difficult during the market downturns, with significant fluctuations in value compared to the overall market.
πŸ“Š 16:35The term 'smart beta' has lost its meaning and is now used to describe any mechanistic formulaic strategy, regardless of its effectiveness.
πŸ“Š 21:59Value stocks are currently trading cheap, with roughly 80% of factors in their cheapest quintile, but it is uncertain if a catalyst is needed for them to perform or if investor preferences can simply change.

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