The Meb Faber Show: “Passive Investing Is Breaking the Market — Here’s the Hidden Cost”
The Meb Faber Show: “Passive Investing Is Breaking the Market — Here’s the Hidden Cost”
Today’s guests are Rob Arnott, founder and Chairman of the board of Research Affiliates, and Campbell Harvey, Head of Research at Research Affiliates and Professor of Finance at the Fuqua School of Business at Duke University.
In today’s episode, Rob and Cam touch on the state of value investing in a megacap dominated market, emphasizing the potential consequences of large scale passive investing. They also touch on the rapid change presented by AI, what it may be capable of, and its impacts on how we should view investing. Finally, they address the global investing environment and macro trends, instability, and the role of government in changing world markets.
To see links or read the transcript of the episode, visit us at: https://www.themebfabershow.com/episo…
(0:00) Starts
(1:46) Introduction of Rob Arnott & Cam Harvey
(7:35) Passive investing risks
(14:22) The opportunity in small caps and foreign markets
(24:22) Similarities between today & the Dot-Com era
(34:43) REITs, gold and investor sentiment
(47:14) Government spending & US national debt concerns
(1:03:27) US debt service, defense spending, and financial crisis risks
(1:05:09) Cam on the inverted yield curve
(1:08:09) Closing remarks and listener feedback
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