145: Why the Fed Can’t Forecast, How Zero Rates Were a Huge Mistake and is Nvidia’s $3tn*+ Valuation Sustainable? With Rob Arnott, Founder of Research Affiliates
Money Maze Podcast
Money Maze Podcast
4.8 • 216 Ratings
🗓️ 27 June 2024
⏱️ 57 minutes
🧾️ Download transcript
Summary
He has earned a reputation as a highly respected, value-orientated investor with clarity about unrealistic valuations, mean-reversion and where the investment opportunities may lie.
In this interview he shares a timely analysis of Nvidia, which achieved a valuation of over $3tn last week (surpassing Microsoft as the world’s most valuable business). We thought it was timely to listen to his perspectives given today’s highly skewed, AI obsessed, passive-besotted investing world!
Rob describes his approach to evaluating risks and returns, why he believes the US current fiscal path is unsustainable, and how his firm, Research Affiliates, have developed indices to allow investors to access more compelling opportunities.
He unpicks his view as to why narratives around much-loved tech companies may already be reflected in their share prices, why the value opportunities are profound, especially outside of the US and particularly in emerging markets. Furthermore, he points out the disconnect between unloved value stocks and their underlying businesses (which have often been performing just fine).
Rob also discusses portfolio allocations today, building resilience in your portfolio to allow for geopolitical turbulence, and the asymmetry of owning US inflation-linked Treasuries (TIPS) vs straight treasuries.
The Money Maze Podcast is kindly sponsored by Schroders, IFM Investors and the World Gold Council.
Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube | *CNBC, June 2024
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to the Wall Street Shuffle in the Money Russell. |
| 0:16.0 | Welcome to the MoneyMays podcast. I'm Simon Brewer and along with my co-founder, Will Campion. |
| 0:22.3 | We created this show in 2020 to explore and unravel some of the mysteries surrounding the |
| 0:27.4 | investment and business worlds. episodes are available on audio via our YouTube channels and we're available on audio via most |
| 0:42.7 | podcast platforms and on video via our YouTube channel and we're active on all major social media |
| 0:48.7 | platforms to stay up to date with every episode please do sign up up to our newsletter at MoneyMayspodcast.com. |
| 0:55.9 | And we'd like to thank you for listening. |
| 0:57.6 | If we could ask one favour, we'd love you to tell a friend or colleague about us. |
| 1:02.7 | Thank you. |
| 1:05.0 | Our guest today has published more than 100 academic papers and co-authored several books. |
| 1:10.6 | His firm research affiliates |
| 1:12.1 | managed circa 150 billion in assets, and he's earned a reputation as a highly respected, |
| 1:18.2 | value-oriented investor with clarity about unrealistic valuations, mean reversion, and where the |
| 1:24.5 | opportunities lie. Perfect for today's highly skewed, AI-obsessed, passive-besotted investing world. |
| 1:32.7 | Rob Arnott, welcome to the Moneybase podcast. |
| 1:35.3 | Thank you very much. |
| 1:36.5 | Am I right saying you've just landed from the US? |
| 1:39.2 | That's almost exactly right. |
| 1:41.1 | It was about six hours ago. |
| 1:42.6 | Oh, and you live in Miami? |
| 1:45.4 | I live in Miami except in summer. This is my transition week. I flew from Miami here and I fly back to California |
| 1:51.5 | after. So I spend summers in California. Well, as I started my research and I've known your |
... |
Transcript will be available on the free plan in -274 days. Upgrade to see the full transcript now.
Disclaimer: The podcast and artwork embedded on this page are from Money Maze Podcast, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Money Maze Podcast and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.