Rob Arnott Expects Miniscule Returns in Next Decade

In contrast to the average 16% annualized returns the S&P 500 delivered over the past 11 years, Research Affiliates founder Rob Arnott expects paltry returns in the coming decade. This according to a recent article in Financial Advisor magazine. The article reports that, according to Arnott, “a traditional 60-40 portfolio is likely to deliver somewhere between zero and 1% over the next decade, a period when all baby boomers will have reached normal retirement age.”… Read More

Rob Arnott is All in On Value

In a recent interview with CityWire, Research Affiliates chairman and founder Rob Arnott explains why value investing has suffered from the coronavirus pandemic but says it isn’t time to run away from value stocks. “We’re in one of the few industries in the global macroeconomy where customers hate a bargain,” quips Arnott, describing how depressed stock prices are not drawing investors, adding, “That’s the nature of the investing world.” Arnott explains that value stocks have… Read More

Arnott: Market Shift Coming in 2020

Research Affiliates chairman Rob Arnott sees a major market shift on the horizon that could present a “spectacular “opportunity for value investors. This according to an article in CNBC. In an interview with Trading Nation, Arnott said, “We’ve seen more and more people give up on the idea of value investing, which we think is a little strange because we’re in the only major industry in the global macro economy where people hate bargains,” adding,… Read More

Rob Arnott Talks About a Fanmag Bubble

In a recent interview with Financial News, Research Affiliates partner Rob Arnott argued that the surge in valuations of the largest U.S. tech stocks is unlikely to continue, adding that the concentration of assets in a small number of companies is posing a threat to the bull market. “Will these stocks produce such impressive growth that they will justify their current market cap, or are these implausible growth expectations? We do not have a crystal… Read More

Rob Arnott Claims Victory on Factor Crowding

Research Affiliates Co-Founder Rob Arnott is feeling “redeemed” after the rotation earlier this month from growth to value outperformance, according to an article in Bloomberg that says, “it smacks of quantitative strategies growing in popularity so when the trend breaks, it breaks big.” In a phone interview with Bloomberg, Arnott said, “whether this is the start of a comeback for value is arguably the most important question here because value has underperformed now for 12… Read More

Rob Arnott on Indexing

A recent article in Barron’s outlines recent research by “modern-day Socrates” Rob Arnott, founder of Research Affiliates, which suggests “index-fund managers are willfully ignoring low-hanging alpha—the ability to beat the market—in order to slavishly hew as closely as they can to the capitalization-weighted indexes they track.” Arnott’s analysis of S&P 500 index data from 1989 to 2017 shows that the stocks added to the index underperformed those that were “kicked out” by an average of… Read More

Rob Arnott Steers Clear of FAANG Stocks

A recent Forbes article offers a recap of an interview with Research Affiliates’ founder and CEO Rob Arnott, including his insights regarding the market and “smart beta” investing. Here are some highlights: Research Affiliates’ index investing strategy weights companies by the size of their businesses rather than market capitalization (share price). Arnott argues, “Why would you want to have a bigger investment in a company just because it got more expensive? That makes no sense.”… Read More

Market Experts Offer Predictions for 2018

A recent article in Money shares the views of a panel of market experts (including Rob Arnott, Jim Paulsen and Liz Ann Sonders, among others) regarding the state of the bull market and the risks and opportunities they see going forward. Here are some highlights: Can the bull market persist? While Sonders remains bullish, she says, “I think we have to start to be mindful of some of the risks.” Paulsen adds that he doesn’t… Read More

Podcasts of the Week: Pysh, Arnott & Thaler

By Jack Forehand — With so many great investing podcasts out there, it can be difficult to identify the best ones. Through our new Podcasts of the Week segment, I will try to help filter out the most interesting episodes and identify the podcasts I learned the most from each week. In addition, we will also take a look at a great podcast from the past via the From the Archives section. Best Episodes This… Read More

Arnott Says U.S. Stocks are “Dead Money”

The founder and CEO of Research Affiliates argues that investors should load up on emerging market  stocks and sell off overpriced U.S. equities, according to a recent Barron’s article. In a recent interview, Arnott shared his insights on the subject: Should an investor make emerging markets a larger part of their portfolio? It depends on their level of risk tolerance, Arnott says. For instance, if an investor becomes “panicky” if share price gains are not… Read More