An Evidence-Based Look at the Struggles of Value Investing | Larry Swedroe

In this episode of Excess Returns, we sit down with Larry Swedroe to tackle some of the most pressing issues in investing today. We dive deep into topics that are on many investors' minds, including: Is value investing still effective in today's market? How is the rise of passive investing impacting market efficiency? Should we be concerned about market concentration? Is international diversification still important? What role will artificial intelligence play in investing? Larry brings his decades of experience and research to bear, challenging common assumptions and offering nuanced perspectives that often go against conventional wisdom. We explore the importance of maintaining a long-term view, the dangers of recency bias, and why Larry believes hyper-diversification across multiple asset classes may be beneficial for investors. We also discuss factor investing, the increasing role of alternatives, and how individual investors can approach portfolio construction in our evolving market landscape. 0:00 - Introduction to Excess Returns 0:22 - Meet Larry Swedroe 1:30 - Is Systematic Value Investing Dead? 6:15 - The Federal Reserve’s Impact on Value Investing 9:30 - Has Value Investing Become Too Crowded? 12:20 - Market Concentration and the Value Premium 15:00 - The Role of Interest Rates in Investing 19:45 - How Academic Research Influences Investing 23:10 - Winner-Take-All Businesses and Their Impact on Value Stocks 27:50 - Value Investing and Underexposure to Technology 32:00 - Behavioral vs. Risk-Based Factors in Investing 38:05 - The Rise of Passive Investing: Market Impact 44:10 - The Increasing Costs and Risks of Shorting 49:15 - Market Concentration and Its Risks for Investors 53:10 - International Diversification: Does It Still Make Sense? 57:20 - The Role of Artificial Intelligence in Investing 1:01:05 - Closing Thoughts and Key Takeaways for Investors SEE LATEST EPISODES https://excessreturnspod.com FIND OUT MORE ABOUT VALIDEA CAPITAL https://www.valideacapital.com FIND OUT MORE ABOUT VALIDEA https://www.validea.com FOLLOW JUSTIN Twitter: https://twitter.com/jjcarbonneau LinkedIn: https://www.linkedin.com/in/jcarbonneau FIND OUT MORE ABOUT SUNPOINTE INVESTMENTS ⁠⁠⁠https://sunpointeinvestments.com/⁠⁠⁠ FOLLOW MATT Twitter: ⁠⁠⁠https://twitter.com/cultishcreative⁠⁠⁠ LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/matt-zeigler-a58a0a60/