Lead-Lag Live cover image

Lead-Lag Live

Jason Hsu on Smart Beta Strategies, China's Market Considerations, and Investment Opportunities in Japan

Dec 7, 2024
In a captivating discussion, Jason Hsu, co-founder of Research Affiliates and founder of Rayliant Global Advisors, shares insights on smart beta strategies and international markets. He examines how index investing is reshaping market efficiency and delves into the complexities of investing in emerging markets like China. Jason advocates for a new classification for China, highlighting its potential amidst volatility. He also uncovers promising investment opportunities in Japan, emphasizing the revival of mid and small-cap companies. A must-listen for savvy investors!
52:40

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The shift towards index-based investing in major US indices challenges traditional market efficiency and reduces thorough analysis of diverse market segments.
  • Investing in emerging markets reveals significant growth potential and favorable valuations, pushing investors to seek opportunities beyond China despite its complexities.

Deep dives

Changing Dynamics of the U.S. Market

The current state of the U.S. market has shifted away from traditional active management and research, with a significant portion of capital now indexed to the S&P 500 or NASDAQ. This shift means that a large influx of funds is directed toward the largest companies without detailed analysis, resulting in weakened price discovery and market efficiency. As a consequence, much of the investment dollars are simply flowing toward established giants, leading to less active research on diverse market segments. This environment fosters the notion that investments are less about fundamentals and more about capital movement in the largest market indices.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode