In a podcast interview last month with the Investment Innovation Institute, Research Affiliate’s Rob Arnott discussed a range of issues related to factor investing, quant strategies and research with host Daniel Grioli. Here are some highlights: “There are no bargains in the absence of fear, and fear is usually rooted in a narrative of things that could go wrong,” says Arnott, adding that opportunities present themselves in stocks that are out-of-favor, unloved and have inflicted… Read More
Writing in the Wall Street Journal, Jason Zweig cautions readers against blindly investing in popular “smart beta” funds. He notes that a recent Research Affiliates study suggests “their low risk in the past may lead to higher risk in the future.” These “smart beta” funds are “backed by research purporting to show [they] ha[ve] beaten the market.” Assets invested in such funds has tripled over five years, to a total of $565 billion in 2015. … Read More