Owen Lamont discusses the concept of market efficiency and how it relates to bubbles, citing the example of the tech stock bubble in the late 1990s. He notes that some economists, such as Fama, believe that the market is efficient and that bubbles are not possible, while others argue that the tech stock bubble was a clear example of a market inefficiency.

Owen Lamont discusses the phenomenon of crypto and Bitcoin, noting that many economists believe that these assets are irrational and lack fundamental value. However, he also notes that some economists, such as John Cochrane, have argued that Bitcoin has a convenience yield and can be thought of as a liquidity service.

Owen Lamont discusses the concept of growth vs value investing, noting that the value spread has been very wide in recent years. He also notes that the correlation between large cap growth stocks and the rest of the market has decreased significantly, leading to a bifurcation of the market.

Owen Lamont discusses the low correlation between large cap growth stocks and the rest of the market, noting that this is a significant development that has important implications for market risk. He argues that this low correlation is not necessarily a bad thing, as it could suggest that the market is becoming less volatile.

the correlation of those stocks during that period was so remarkably higher so so it's not just that big cap growth is vastly less correlated than it normally would be to the rest of the market it's vastly less correlated to each other that to me is super interesting

what is your overall take on the value Factor as we're discussing it's clearly got some time variation sometimes value is cheaper than other times in your view of just portfolio construction over the long term where does value sit in the factor Zoo so to speak

historically High planned investment has been followed by low stock returns in subsequent years

there are these railroads built in Britain in 1850 too many railroads you know like three railroad lines going to the same medium-sized city and one explanation of that is competition neglect

The argument was made that each of these electric vehicle companies was priced to perfection, as if it would be the winner, and the existing automotive makers were also priced so it's perfectly fine to have one huge electric vehicle manufacturer that has a high market cap, but when its market cap goes up, the other one's market caps should go down, and that's not what we see, it's as if each stock is being priced by the biggest optimists, but no one's really doing the adding up, and so the whole sector gets overpriced.

The lowall strategy involves buying low beta stocks and levering them up, which can provide returns similar to those of high beta stocks, and this strategy has been implemented through ETFs and separate accounts at institutional money managers, but it has not done well in the past five years, and the reason for this is that the strategy does well in a typical year, but not in a time of a huge bull market where risky stocks go up.

The existence of levered ETFs is more a result of what regulators will allow, rather than a change in human nature, and people have always been interested in taking risks and gambling, and the rise of prediction markets and other forms of betting is a reflection of this, but it's not necessarily a good thing when speculative gambling affects stock prices and degrades market quality.

Finding alpha is a challenging task, and it requires a deep understanding of market dynamics and the ability to identify profitable investment strategies, and the lowall strategy is one such approach that can provide returns similar to those of high beta stocks, but with less risk, by leveraging up low beta stocks.

AI is an amazing benefit to humanity and there's no doubt that AI is going to change our economy in fundamental ways and if you thought the internet bubble and the internet was an important development in 1999 AI is like 10 times more important

AI is going to impact many professions and it's going to impact especially the profession or it has already impacted in a good way the profession of asset management and that's just Alpha

AI is really part of turbocharging that I know I sound like some kind of bizarre crypto Enthusiast who was saying crypto but this is AI this this is a real thing that is doing science fictional we're living in a science fictional time of history

I think it's going to be incredibly interesting I think that to some extent there is a very small cohort of folks and I certainly wouldn't put myself in that cohort that really really understand the potential implications of where we're going

it's going to be very disruptive but also it's very difficult to think that this is not Humanity in a lot of ways at its best with respect to advancement