Excess Returns Corey Hoffstein and Ben Hunt | PNL For a Purpose
May 9, 2024
Investing experts Corey Hoffstein and Ben Hunt discuss strategic risk management, inflation analysis, and the illusion of a mechanistic economy. They delve into earning premiums, diversifying investments, and understanding inflation through human expectations. The podcast also covers Japan's economic challenges, wage increases, and analyzing economic narratives.
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Risk Transformation
- Risk cannot be destroyed, only transformed.
- All finance is risk transfer; are you paying the right price?
No Pain, No Premium
- Earning premiums requires bearing risk, sometimes for prolonged periods.
- Conviction is key, as statistical validation can take very long.
Diversification Value
- Diversify cheap data as you would expensive alpha.
- Don't overlook diversifying beta; it's valuable and often has higher conviction.