Show from 9/15/23

Prof. Siegel joins Jeremy Schwartz with a breakdown of a very big week for the market. He does note an increase in inflation but it shouldn’t result in an increase for next week. He also discusses the large rise in oil, noting long lines at gas stations and the impact the rise will have. He previews the upcoming week with a prediction that it will be hawkish. He finishes with a quick comment about the Arm IPO. (12:03) Professor Robert Novy-Marx starts off by talking about his educational past and how he got into his finance career today. He gives us his thoughts on value research and why he has confidence in it as a factor. He also details that the underperformance of value stocks is due to sector tilts. Jeremy asks Robert about his thoughts about the research on intangible assets and tech investments that are not capitalized. He goes into detail on the difference between gross profits versus net income. They discuss how Robert will be presenting at the Wharton School’s Jacobs Levy Equity Management Center for Quantitative Financial Research at its 2023 Frontiers in Quantitative Finance Conference next friday. He talks about the paper he will be presenting called Reversals and the Return to Liquidity Provisions.

Guest: Professor Robert Novy-Marx earned the Fama/DFA Prize for the best capital markets/asset pricing paper in the Journal of Financial Economics (2012 and 2013), the Smith-Breeden Prize for the best capital markets paper in the Journal of Finance (2011), the Spängler IQAM Prize for the best paper in the Review of Finance (2011), and the Mill's Prize for the best paper in Real Estate Economics. Novy-Marx is also a former professional triathlete, a member of the National Bureau of Economic Research and taught at the Booth School of Business before coming to the Simon School.

Learn more at: https://simon.rochester.edu/digital-measures-faculty/robert-novy-marx

Follow Robert on LinkedIn: linkedin.com/in/robert-novy-marx-b931a6174