Two Quants and a Financial Planner | Bridging the Worlds of Investing and Financial Planning

10 Common Misconceptions About Factor Investing

Aug 20, 2024

01:02:39

In this episode, we explore common misconceptions about factor investing. We discuss why factors aren't less risky than the market, the challenges of diversification, and why adding more factors isn't always beneficial. We emphasize the importance of long-term perspectives when evaluating factor performance and the need for strategies to evolve with changing markets. We also touch on the emotional aspects of factor investing, the differences between academic studies and real-world implementation, and emerging ideas about factor design.

We hope you enjoy the discussion.

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