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Welcome to the Alpha Architect Round Up. Every month the Alpha Architect crew gets together and talks financial trends and news with an evidence-based outlook. This month we talk about the AQR's Cliff Asness's new paper "The Less-Efficient Market Hypothesis" and review his claims regarding the market becoming less efficient over the past 30 years, valuation spreads as an indication of inefficiency, speeds vs. accuracy of markets, indexing, low interest rates and social media contagion. Additionally, we answer questions on tactical asset allocation, permanent tail hedging and equity contracts in managed futures.

0:00 - Intro/ 2k Subs!

1:58 - Valuation Spreads & Market Efficiency

7:29 - Speed vs. Accuracy

20:26 - Indexing & Efficiency

24:22 - Low Interest Rates & Efficiency

30:35 - Social Media & Efficiency

39:56 - Tactical Asset Allocation

44:54 - Permanent Tail Hedging

48:05 - Equity Contracts in Managed Futures

51:21 - Outro

Sources:
Asness, Cliff S., The Less-Efficient Market Hypothesis (August 30, 2024). 50th Anniversary Issue of The Journal of Portfolio Management, Forthcoming.

Disclosures: alphaarchitect.com/disclosures.