Facts vs Feelings with Ryan Detrick & Sonu Varghese Cliff Asness Returns (Ep. 150)
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Aug 27, 2025 
Cliff Asness, co-founder of AQR Capital Management and a luminary in quantitative investing, reappears to share his insights on today’s market dynamics. He discusses the notion of market bubbles and why they might not be as dire as feared. Cliff dives into the rise of social media grifts and the speculative nature of crypto investments. He reflects on unexpected economic anomalies and the efficacy of buffered ETFs. The conversation takes a personal turn with humorous parenting stories and pop culture references, making for a captivating listen.
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Fart Coin Joke Reveals Crypto Skepticism
- Cliff joked about a tongue-in-cheek blog character claiming "fart coin" won in the future.
- He used humor to signal crypto skepticism while admitting younger investors may outperform him.
Expensive Market, Not A Classic Bubble
- Markets show expensive signals but fall short of classic bubble extremes by Cliff Asness's measures.
- Expect lower long-term returns and prioritize diversifiers when valuations sit in high percentiles.
Markets Are Fat-Tailed Short Term
- Short-term market moves are fat-tailed and defy normal-distribution expectations.
- Structure portfolios to survive frequent extreme shocks rather than assume thin-tailed behavior.
