The Mind Money Spectrum Podcast

#41. What does academia have to say about what really works when investing in stocks?

September 22, 2020 Aaron Agte and Trishul Patel Season 1 Episode 41
The Mind Money Spectrum Podcast
#41. What does academia have to say about what really works when investing in stocks?
Chapters
The Mind Money Spectrum Podcast
#41. What does academia have to say about what really works when investing in stocks?
Sep 22, 2020 Season 1 Episode 41
Aaron Agte and Trishul Patel

In this episode, Trishul and Aaron discuss the academic research that has informed investing strategies over the past 90 years. Value & Momentum, Modern Portfolio Theory, Efficient Market Hypothesis, Factor Analysis, Asset Allocation, and more. They cover everything you need to know to sound intelligent with your investment club. But the big picture is that all this knowledge won't increase your odds of beating the market. Even though many of these breakthroughs resulted in Nobel Prizes, as more investors flooded to adopt cutting-edge strategies, superlative returns became ever more elusive. It turns out some of these winning approaches do work some of the time, as theory would suggest. However, none of them work with sufficient consistency. Furthermore, it's likely impossible to identify the periods when a strategy will work as intended. In the end, you may be better off finding something better to do with your time and money than trying to outsmart the market.

Episode References

MMS #2. Buying stocks can be fun, but don't fall into these common traps.
MMS #21. Why the VIX is useless.
Investing Forever - Why investing in one thing over another?
Investing Forever - Efficient Market Hypothesis
Modern Portfolio Theory
Idiosyncratic Risk
Benjamin Graham
Capital Asset Pricing Model
Fama French Three-Factor Model
Setting the Record Straight on Asset Allocation
Momentum Investing
Modern Portfolio Theory vs Behavioral Finance
WarGames (1983)
Obsoleted
Remain Solvent (Quote)
Value and Momentum Everywhere
Flash Boys by Lewis

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Trishul and Aaron discuss the academic research that has informed investing strategies over the past 90 years. Value & Momentum, Modern Portfolio Theory, Efficient Market Hypothesis, Factor Analysis, Asset Allocation, and more. They cover everything you need to know to sound intelligent with your investment club. But the big picture is that all this knowledge won't increase your odds of beating the market. Even though many of these breakthroughs resulted in Nobel Prizes, as more investors flooded to adopt cutting-edge strategies, superlative returns became ever more elusive. It turns out some of these winning approaches do work some of the time, as theory would suggest. However, none of them work with sufficient consistency. Furthermore, it's likely impossible to identify the periods when a strategy will work as intended. In the end, you may be better off finding something better to do with your time and money than trying to outsmart the market.

Episode References

MMS #2. Buying stocks can be fun, but don't fall into these common traps.
MMS #21. Why the VIX is useless.
Investing Forever - Why investing in one thing over another?
Investing Forever - Efficient Market Hypothesis
Modern Portfolio Theory
Idiosyncratic Risk
Benjamin Graham
Capital Asset Pricing Model
Fama French Three-Factor Model
Setting the Record Straight on Asset Allocation
Momentum Investing
Modern Portfolio Theory vs Behavioral Finance
WarGames (1983)
Obsoleted
Remain Solvent (Quote)
Value and Momentum Everywhere
Flash Boys by Lewis

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.