To carry on the trend of amazing guests on the show, today we welcome Antti Ilmanen. Antti is the co-head of the Portfolio Solutions Group at AQR, and the author of a couple of really impactful books that we highly recommend. His most recent is Investing Amid Low Expected Returns, and in today's chat, we get to hear all about the ideas contained in its pages, and the most important moments in his career that have shaped his philosophy. Antti received his PhD in Finance from the University of Chicago and has had a long career of working with high profile names that you might recognize from past episodes of this podcast. Our guest talks about the need for cultivating your patience in relation to your investment portfolio and shares many other great pieces of practical advice that you can implement today. We delve into some bad investment habits that Antti noted in his book and also touch on the usefulness of bonds, illiquid assets, trend following, and much more. Be sure to tune in today to hear all that this great mind has to offer.   Key Points From This Episode:   The power and limitations of using historical data for calculating expected returns. [0:04:17] Balancing historical data with market-implied expected returns. [0:07:47] Antti comments on shifting into higher expected return equity markets. [0:11:37] The role of bonds in revenue generation and why to not give up on them completely. [0:13:00] Locating the roots of the positive premium that Antti associates with bonds. [0:16:35] The effect of illiquid assets on expected returns. [0:19:44] Why recent historical returns in real estate are not indicative of future expected returns. [0:23:40] The response from institutional investors to lower expected returns. [0:26:09] Situating value's current dip in a broader historical picture. [0:29:57] Some comments on the recent performance of rates, growth, and value. [0:33:39] Today's expected value returns in comparison with other points in history. [0:37:19] Antti unpacks the idea of trend following and its performance during the most recent crash. [0:39:53] Defining the defensive style premium and its relation to quality. [0:41:26] Antti differentiates carry and value strategies from each other. [0:45:55] An explanation of the importance of being 'long-short' to capturing the premium. [0:51:24] Locating the difference between alternative risk premia and alpha. [0:55:31] Practical tips for investors to wait out periods of poor performance. [0:57:45] The need for investors to be more fee-conscious in today's, low-return world. [1:01:35] Antti shares about what he calls the investor's 'premier bad habit'. [1:02:33] The impact of Ken French on Antti's career and philosophy. [1:05:29] How Antti defines success at this point in his life and the priority he gives to balance. [1:07:33]

It has been an amazing year for the podcast. We have had some incredible guests during 2022 who have provided us and listeners with insights and thought-provoking ideas about the world of finance. We covered a lot of ground and to wrap up the year we decided to recap some of our favourite moments for listeners. In this episode, we highlight the many themes covered during this year, such as the basics of investing, stocks and bonds, how to make wise investment decisions, gender inequality, asset management, index funds, market trends, and portfolio management. We also highlight some of the indirectly topics indirectly related to finance such as the value of happiness, enjoying the pursuit of happiness, the importance of goal setting, and much more. Join us as we reflect on some of our best moments from the year and provide an overview of the many vital lessons we have learned in this final episode of the year for the Rational Reminder podcast.   Key Points From This Episode:   Mac McQuown explains how the data revolution changed the game of investing. (0:09:05) Robin Wigglesworth and tracking the performance of portfolios in the 60s. (0:12:56) Professor Fama shares what it is like to see the impact of his academic work on the practice of asset management. (0:16:02) Gus Sauter tells us about the role the University of Chicago played in the index fund revolution. (0:18:41) Professor Fama unpacks what it means for a market to be efficient. (0:20:52) Gerard O’Reilly and the differences in the types of market strategies available. (0:24:27) Professor Betermier shares his research from multiple papers concerning tendencies towards growth and value stocks. (0:28:50) Eduardo Repetto tells us whether having a portfolio consisting of 100% small-cap value stocks makes sense. (0:36:06) Professor Koijen explains whether index funds distort market prices and make markets less efficient. (0:40:30) Professors Berk and van Binsbergen discuss if it is possible to find skilled fund managers before they are absorbed by their fund. (0:43:44) Professor Cederburg explains how data sets can be upwardly biased and why you need to be aware of it when looking at data. (0:48:15) Bill Janeway describes the three-player game regarding investments. (0:50:51) Professor Phalippou compares the performance of private equity relative to public equities. (0:53:42) Antti Ilmanen tells us how investors can stick with an investment strategy during times of low performance. (0:59:10) Professor List tells us how often people should check their investment portfolios. (1:01:56) Leonard Mlodinow explains how the rational mind and the emotional mind are intertwined. (1:04:56) Professor Edmans’s Grow the Pie and making the world a better place. (1:07:27) Rebecca Walker outlines the effect learning about money has on people. (1:11:15) Colleen Ammerman describes the current state of women in the workplace. (1:13:21) Find out why the pursuit of a goal should be enjoyable with Professor Fishbach. (1:15:40) Andrew Hallam talks about life satisfaction after middle age and how to get there sooner. (1:20:28) Jay van Bavel details the effect of group identity on goal setting. (1:23:08) Professor Frank unpacks the relationship between the consumption of luxury goods and happiness. (1:26:55) Professor Bohns provides insight into why people are under-confident in their social lives. (1:31:01) Professor Fama reveals how many hours a day the brain can handle deep work. (1:34:24) Cassie Holmes and why happiness is a good thing from a scientific perspective. (1:35:30) Colonel Chris Hadfield shares the lesson he learned as an astronaut that he applies to his everyday life. (1:38:52)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-233-a-year-in-review-discussion-thread/20856   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Episode 182: John 'Mac' McQuown — https://rationalreminder.ca/podcast/182 Episode 184: Robin Wigglesworth — https://rationalreminder.ca/podcast/184 Episode 186: Andrew Hallam — https://rationalreminder.ca/podcast/186 Episode 188: Professor Fishbach — https://rationalreminder.ca/podcast/188 Episode 192: Professor Edmans — https://rationalreminder.ca/podcast/192 Episode 194: Bill Janeway — https://rationalreminder.ca/podcast/194 Episode 196: Professor Betermier — https://rationalreminder.ca/podcast/196 Episode 198: Gerard O’Reilly — https://rationalreminder.ca/podcast/198 Episode 200: Professor Eugene Fama — https://rationalreminder.ca/podcast/200 Episode 202: Antti Ilmanen — https://rationalreminder.ca/podcast/202 Episode 204: Professor List — https://rationalreminder.ca/podcast/204 Episode 206: Professor Bohns — https://rationalreminder.ca/podcast/206 Episode 208: Rebecca Walker — https://rationalreminder.ca/podcast/208 Episode 210: Professor Phalippou — https://rationalreminder.ca/podcast/210 Episode 212: Professor Koijen — https://rationalreminder.ca/podcast/212 Episode 214: Jay Van Bavel — https://rationalreminder.ca/podcast/214 Episode 216: Gus Sauter — https://rationalreminder.ca/podcast/216 Episode 218: Colleen Ammerman — https://rationalreminder.ca/podcast/218 Episode 220: Professors Berk and van Binsbergen — https://rationalreminder.ca/podcast/220 Episode 222: Cassie Holmes — https://rationalreminder.ca/podcast/222 Episode 224: Professor Cederburg — https://rationalreminder.ca/podcast/224 Episode 226: Colonel Chris Hadfield — https://rationalreminder.ca/podcast/226 Episode 228: Eduardo Repetto — https://rationalreminder.ca/podcast/228 Episode 230: Professor Frank — https://rationalreminder.ca/podcast/230