The Fed Model for valuing stocks says when interest rates and inflation are low, you should pay a higher P for stocks. Cliff Asness: I've written probably a much more empirical paper on precisely this idea. How much excess return they need on stocks versus bonds is a function very strongly of the last 20 years relative volatility of stocks and bonds.
Tyler and investment strategist Cliff Asness discuss momentum and value investing strategies, disagreeing with Eugene Fama, Marvel vs. DC, the inscrutability of risk, high frequency trading, the economics of Ayn Rand, bubble logic, and why never to share a gym with Cirque du Soleil.
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