Rob Arnott and Christopher Brightman of Research Affiliates recently discussed the allocation and performance of PIMCO All Asset Fund, which goes outside mainstream investments into what they describe as the Third Pillar. Arnott explains that a three-year bear market in Third Pillar investments has impacted investors’ outcomes and outlooks. Although the fund’s 7% loss from 2013 to 2015 is significantly better than the relevant benchmarks, it appears disappointing in light of the excellent performance of… Read More
The “smart beta” investing movement has gained a lot of followers – and fund inflows – over the past few years. But now there are signs that the influx of money into these approaches may be leading to big trouble, Validea CEO John P. Reese writes in his latest column for Canada’s Globe and Mail. While traditional index investing involves weighting holdings by their market capitalizations, smart beta approaches often use quality metrics such as… Read More
MarketWatch reports that Rob Arnott, chairman of Research Affiliates, says that smart beta has now become so popular that it is dangerous. Arnott, whose research helped to fuel interest in smart beta funds, says that a “smart-beta crash” is “reasonably likely.” Smart beta funds have focused on stocks with characteristics such as low volatility or high momentum, spurred on by data showing that such strategies would have yielded high returns if employed historically. Now, however,… Read More
Yale professor Roger Ibbotson and Research Affiliates founder Rob Arnott debated the challenges and opportunities of timing the market at the 2015 Schwab IMPACT conference. As reported by Financial Advisor, the two speakers generally agreed that “the stocks that are the most popular will do the worst, as Ibbotson said, or, as Arnott put it, “you just have to find the flows and do the opposite.” But Arnott argued for focusing on underlying valuation and… Read More
If you’re looking for good vacation ideas, you should look for places with positive reviews on any number of websites that offer ratings on hotels, restaurants, and activities. If you want to make money in stocks, however, Validea CEO John Reese says to seek out some unloved “one-star” locales.
Fundamental indexing guru Rob Arnott says that to get bargains, you have to invest in places where fears are high. Right now, he says that means to look in places like emerging markets and Europe.
In an interview with Bloomberg View’s Barry Ritholtz, Research Affiliates’ Rob Arnott recently talked about the fundamental indexing approach that he pioneered.
Emerging markets have been scaring a lot of investors lately — and that makes them just the sort of play that top strategist Rob Arnott likes.
While stocks have been climbing higher, fundamental indexing guru Rob Arnott of Research Affiliates hasn’t changed his outlook for the coming decade — and it’s not an optimistic one. In a recent column for MarketWatch, Mark Hulbert looks at a forecasting model Arnott uses that has been highly accurate over the past century-plus. The model forecasts stock market returns by adding together just two factors: dividend yield and real growth in earnings and dividends. “Even… Read More
Top fund manager Rob Arnott says that it’s becoming “embarrassing” to admit you’re a bear lately, and that means it’s time to be cautious. “If you look at advisor sentiment surveys, you find that right now there are fewer bears than have been seen in these surveys except at extreme major market tops, such as in early 2000,” he tells Yahoo! Finance’s Breakout. “When it gets to be downright embarrassing to be a bear, doesn’t… Read More