James Davolos from Horizon Kineticsm discusses the challenges of conventional wisdom in the world of investing. This exciting discussion delved into the intricacies of market dynamics, particularly focusing on the enduring trend of growth outperforming value. Davolos dissected the evolution of this trend, attributing it to factors such as passive investing, low-interest rates, and fiscal spending. Throughout, Davolos provided nuanced insights and offered a thought-provoking analysis of current market conditions. 

Today we discuss: 

Factors contributing to the divergence between growth and value investing Historical context of value outperformance following the tech bubble burst Examination of market structure and the dominance of passive investing Challenges for value investors amid the current market dynamics Potential transition points for a shift in market dynamics Analysis of fundamental and market structure factors affecting investment strategies Consideration of the real estate market's sensitivity to interest rates Debate on the sustainability of fiscal spending and its implications Impact of rising interest rates on the economy and financial markets Davolos' perspective on the significance of real yields and the value of the US dollar Resilience of gold prices despite headwinds from real yields and the US dollar

For more information, visit the show notes at https://moneytreepodcast.com/challenging-conventional-wisdom-james-davolos-606

Today's Panelists:

• Kirk Chisholm | Innovative Wealth
• Barbara Friedberg | Barbara Friedberg Personal Finance

 

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