The S&P 500: A Growth-Tilted, Momentum-Chasing, Active Strategy (w/ Mike Green & Rob Arnott)

[@RealVisionFinance]

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[@coolcatool]

Excellent interview, this is curving all the rough edges of portfolio management learnt in MBA and CFA classes! respect 👍

[@MadnSad]

That one minute summary by Rob Arnott is the distilled wisdom of an hour of fascinating discussion on the technicalities of index trading. In a way it discounts the very quant approach that Rob says he pioneered. The same approach has misled mainstream economists to claim omniscience and omnipotence to further mislead gullible politicians. But, human endeavour can still triumph, if a few relinquish control on the many. Distribution of autonomy and control is possible. Lesser creatures like ants and bees have learned to do that.

[@buccleuch7621]

A brilliant discussion and my thanks to both Mike and Rob for sharing their thoughts - and I am a know-nothing who perhaps only understood a small percentage of what they were saying but more than enough to understand the dangers they were pointing out. Perhaps a useful analogy is the South Sea Co. In that instance, the only game in town then was investing in the SS Co, and the world (at least English people) did. Perhaps the index funds might be compared with SS Co. They have increasingly become the only game in town with a natural but undue impact on the market, effectively making it inflate and inflate and well beyond any real value., just like SS Co. It is said that the price of a stock holds all the information about a stock (index). Isn't that information shouting at us that prices are over-inflated. Personally, I believe Tesla is an inspirational company and if they survive the coming storm will become. in reality, the No.1 global vehicle producer. Hope Elon has a well-constructed hurricane shelter.

[@benlamprecht6414]

Thanks for a wonderful interview. I also look forward to the next interview with Rob

[@gurbachansingh_macrofinance]

That is a great conversation. Much appreciate. Thank you very much. Look forward to more.

[@moedinero5625]

Great stuff, very informative.

[@kingcountyband]

How comfortable is Mike's chair though? I need one of those.

[@SiimKallas0]

Is the book mentioned Ubiquity by Mark Buchanan?

[@fuzzyblue9880]

'Anticipation is the stuff of vapors' - Mandelbrot Quantitative analysis can be as much psychology as it is mathematics.

[@talibqayyum5278]

Slight correction. The trade will have been purchased by banks @ close +xxbps re Tesla.

[@marijusjankauskas2957]

Mike mentioned a book about criticality, does anybody know that book?

[@DHTex11]

When do you know which companies are going to be removed

[@mecca07]

Man both these guys are smart

[@alan17h]

I’m just stating now that I’m going to borrow the heck out of that analogy of the car going uphill.

[@didine256]

Thanks for playback speed X2 as they speak pretty slowly 😌

[@GenXstacker]

I thought realvision was supposed to be covering gold this week. Wtf?

[@Learner4FunLifePersona]

There are two types of investors. The ones that beat the S&P500 index and the one that don’t. The outperformers usually included the top stocks in their portfolio. The stocks that have generated the most investor wealth have been Amazon, Tesla, Netflix, and Apple over different stretches of time. What do they have in common besides a love for technology? They have strong sales to growing foreign countries. The global competitiveness is important. They also innovate continually and provide wealth/value to their users. People who wonder why the USA stock market is disconnected from USA fundamentals are looking at the wrong country and the wrong buyers. As an investor, if you are a chronic under-performer, at what point do you outsource your stock pickings or sector allocations to someone who chronically outperforms the market? I’m up 40% this year and i’ve averaged 20% per year over the past 4 years, and am up 70% overall. I beat the S&P500 every year and yet there are people out there with higher returns. Just because 2/3rds of hedge fund managers underperform the S&P500 doesn’t mean you will underperform as well.

[@bjornfollin5056]

Nobody is questioning whether it's possible to beat the market over a 4 year period, especially not during one of the longest US bull runs in history (not including the covid crash, considering that the market recovered in just a few months). You could literally throw darts at a target made up of random stocks, pick the ones you hit and make 20% a year in this climate.

[@onesaneworld3853]

Why take the Risk??? Sell now take profits!!! At least according to s&p 500. I Think bubble is bursting right now... CEOs took Profits days ago...i belive they know whats coming. But what do i know.

[@nukelaloosh4795]

even as a host green gets in his right right right rights

[@onesaneworld3853]

Why take the Risk??? Sell now take profits!!! At least according to s&p 500. But what do i know.

[@davidchang8468]

3 to 6 months later, the robin hood who drove his car up the hill with no brakes, would have been airborne. But he could probably tell no tales.

[@SumerianScientist1]

And Friday? Where are they now?

[@DennisRay99]

Does he ever get to a point? I'm getting bored quick. 😟😟😟

[@Learner4FunLifePersona]

I don’t see why these underperforming tie-wearers don’t just invest in QQQ (the Nasdaq) or ARKK (Kathie Wood) and call it a day. They will continue to outperform the S&P500, they’ll have a lot more free time, and they’ll have a little exposure to Tesla too! Tesla’s car production growth can continue at the current rate and they’ll eventually have a P/E of 40 at the share price of $2500 not including their non-car investments... it is not overvalued. Don’t be a grey bear, this gravy train is just getting started.

[@uzah88]

Their production growth continues but who buys. We’re in a recession maybe going into a depression. They don’t have profits now and won’t during this downturn in the economy. That being said the gravy train might ignore everything that is real and go up making you right and probably rich.

[@DHTex11]

If Trump wins is infrastructure the darling next year? How do we trade?

[@rolm7877]

You two! Go on street and ask anyone would you like take free tesla or Toyta?, Or Tesla owners do you want go back to Toyota, Then you talk about tesla

[@ashkax]

Wrong on dollar. Wrong on spx. Let’s see what else I can bet against you on