Edward McQuarrie: Rethinking Portfolio Theory
Enterprising Investor
00:00
Effects of Survivorship Bias and Relationship Between Interest Rates and Returns
The speakers discuss the impacts of survivorship bias on the equity premium and how it can reduce it in the US. They also delve into the relationship between interest rates and returns, exploring the bond market rally and speculating on a potential bond bear market in the 2020s. The chapter highlights the importance of looking at historical data from a broader perspective and considering international data to challenge US-centric conclusions in portfolio theory.
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