In this discussion, Steve Hou, a Senior Quant Researcher at Bloomberg Indices, delves into the structural forces driving inflation, highlighting decarbonization, demographic aging, and deglobalization. He introduces the Reformers Index, a unique strategy aimed at identifying companies transitioning from 'bad to less bad,' like Uber and Palantir. Hou explores the implications of Baumol's Disease on costs for middle-class families and challenges traditional investment approaches, emphasizing how systematic fundamental momentum can lead to impressive market outperformance.
