Tag: episode_1811

Buying Cheap Assets: Finding Them Now

September 10, 2021

Large-cap U.S growth stocks, particularly tech stocks have been the overwhelming winners of the last decade. They now dominate the market. The top ten S&P 500 stocks, including the FAANGs, account for more than 25% of the index’s total market value, a concentration that worries some market watchers because it is reminiscent of other market tops such as the dot-com bubble when internet stocks made up over 30% of the S&P and the credit bubble when banking stocks reached more than 20%.
With the exception of short-lived spurts value stocks, small-cap stocks and international stocks have badly lagged.
This week’s guest believes the days of this concentrated outperformance by large-cap growth stocks are numbered and suggests some underloved and under-owned alternatives. He is financial thought leader, innovator, and investor Robert Arnott, Chairman of the Board of Research Affiliates, which he founded in 2002 as a self-described “research-intensive asset management firm that focuses on innovative products.”
Among the innovations that he has pioneered is fundamental indexation: building indexes with stocks based on the size of their fundamentals, such as sales, profits, cash flow, book value, and dividends – not their stock price. Research Affiliates has created numerous fundamental indexes for a wide variety of markets and asset classes around the world.
Arnott will discuss why he believes this long era of U.S. large-cap growth dominance could be coming to an end and what could take its place.

WEALTHTRACK #1811 broadcast on September 10, 2021

More Info:
https://wealthtrack.com/financial-thought-leader-rob-arnott-likes-buying-cheap-assets-where-he-is-finding-them-now/

AGAINST THE GODS: THE REMARKABLE STORY OF RISK
by Peter Bernstein
https://amzn.to/3BURwjX

ARNOTT: CAUTION AHEAD

September 10, 2021

Research Affiliates Founder & Chairman Rob Arnott says there are bubbles galore in the market and a looming geopolitical risk with potentially catastrophic consequences.

Watch the related WEALTHTRACK episode.

MAKE SURE YOU ARE TRULY DIVERSIFIED

September 10, 2021


MAKE SURE YOU ARE TRULY DIVERSIFIED

  • Not truly diversified until you own something that makes you uncomfortable
  • Uncomfortable usually means: unpopular, underperforming and cheap
  • “Uncomfortable” assets today include:
    • Value stocks
    • Emerging markets stocks and bonds

FINANCIAL THOUGHT LEADER ROB ARNOTT LIKES BUYING CHEAP ASSETS. WHERE HE IS FINDING THEM NOW?

September 10, 2021

Large-cap U.S growth stocks, particularly tech stocks have been the overwhelming winners of the last decade. They now dominate the market. The top ten S&P 500 stocks, including the FAANGs, account for more than 25% of the index’s total market value, a concentration that worries some market watchers because it is reminiscent of other market tops such as the dot-com bubble when internet stocks made up over 30% of the S&P and the credit bubble when banking stocks reached more than 20%.   

With the exception of short-lived spurts value stocks, small-cap stocks and international stocks have badly lagged. 

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