Practical Lessons from Larry Swedroe | Why Evidence Beats Market Narratives

In this episode of "Two Quants and a Financial Planner," we explore key insights from our previous conversations with Larry Swedroe, one of investing's most evidence-based thinkers. Through a series of clips, we examine crucial investment principles including: Why all investment decisions should be grounded in evidence rather than narratives or speculation The challenge of market forecasting and why most predictions fail How market valuations have become increasingly bifurcated Understanding and surviving long periods of underperformance The importance of considering your unique risks when building a portfolio Why many investors are too conservative with illiquid investments A data-driven perspective on the future of value investing Whether you're a DIY investor or work with an advisor, this episode offers valuable lessons on building resilient portfolios based on academic evidence rather than market narratives. 00:00 Introduction 00:47 Show Opening 01:20 The Importance of Evidence-Based Investing 03:53 Economic Forecasting & Market Predictions 08:07 Information vs Value-Relevant Information 15:53 The Persistence of Abnormal Earnings Growth 21:22 Long Periods of Underperformance 30:27 Market Bifurcation & Valuations 36:56 Benefits of Multiple Return Streams 41:17 Understanding Your Unique Risks 47:42 First Principles & Illiquid Assets 55:30 The Value Premium & Academic Research 1:02:08 Closing & Contact Information