Navigating Market Trends and Innovative Investment Strategies

In this episode, Liz Ann Sonders and Kathy Jones discuss this week’s FOMC meeting and the market reactions. 

Then, Liz Ann speaks with Rob Arnott, founder and chairman of the board of Research Affiliates®. They discuss some of the advanced approaches of Research Affiliates, particularly focusing on the Research Affiliates Fundamental Index® (RAFI) and its implications for growth and value investing. They explore the differences between traditional indexing methods and RAFI, the challenges of forecasting market returns, and the potential for paradigm shifts in finance. The discussion emphasizes the importance of understanding market dynamics and the nuanced definitions of growth and value in investment strategies.

Finally, Kathy and Liz Ann look ahead to the data and economic indicators that investors should be watching next week. 

You can read Rob’s article, which Liz Ann mentions, here: "Fifty Years of Innovation, Mythmaking, and Mythbusting: Personal Reflections." 

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

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Investing involves risk, including loss of principal.

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

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