AQR's Cliff Asness on Brexit, Factor Timing, Markets

The transcript covers a discussion on the impact of Brexit on market volatility and investment strategies, highlighting the role of momentum trades. It delves into the debate on smart beta and factor investing, contrasting views on market timing. The conversation also touches on market valuation, using the Schiller Cape as a reference, and the challenges of timing investments. Finally, it briefly explores personal political views and their potential economic implications.

What is a key factor that increases market volatility according to the discussion?

• High employment rates

• Brexit

• Stable interest rates

• Low inflation

What is the main focus of smart beta investing?

• Random stock selection

• Geographical diversification

• Factor weighting

• Market cap weighting

What is the primary disagreement between the speaker and Rob Arnott regarding investment strategies?

• The necessity of investing in technology stocks

• The impact of currency fluctuations

• The role of diversification versus timing factors

• The importance of market cap weighting

According to the speaker, why is valuation a poor market timing indicator?

• It often gives incorrect signals

• It is too complex to calculate

• It requires constant adjustment

• It is only applicable to bonds

What measure is used to assess the price of the stock market in the discussion?

• Gross Domestic Product

• Consumer Price Index

• Interest Rate Parity

• Schiller Cape

What political stance does the speaker identify with?

• Socialist

• Conservative

• Liberal

• Libertarian

Who does the speaker mention as a potential write-in candidate for the election?

• Bernie Sanders

• Donald Trump

• Hillary Clinton

• Gary Johnson