Excess Returns, Ep. 36: Have the Fed, Narratives and Passive Flows Broken Fundamental Investing?

Valuing a company (or the market in general) typically involves looking at its price and judging that price relative to its current and projected future fundamentals. But some have argued that this process has become broken in the most recent decade and other factors have become more important than actual results. In this episode, we talk about some of these factors, how they have impacted the market, and what they might mean for the future.

We discuss:

How Fed policy has impacted the market in general and the relative valuations of value and growth
Why narratives can sometimes be more important than fundamentals
Whether passive fund flows are distorting the market

We hope you enjoy the discussion.