How asset class returns move in cycles with periods of above-average returns followed by periods of lower returns. How has the rise of passive indexing led to higher stock valuations, and what does that mean for markets?Sponsors<a href="https://netsuite.com/david" rel="noopener noreferrer" target="_blank">NetSuite&nbsp;</a>- Download the CFO’s Guide to AI and Machine Learning<a href="https://legalzoom.com/" rel="noopener noreferrer" target="_blank">LegalZoom - Use code David10 to 10% off</a>Insiders Guide Email NewsletterGet our&nbsp;<a href="https://moneyfortherestofus.com/insiders-guide/" rel="noopener noreferrer" target="_blank">free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter</a>Our Premium Products<a href="https://assetcamp.com/" rel="noopener noreferrer" target="_blank">Asset Camp</a><a href="https://moneyfortherestofus.com/hub/" rel="noopener noreferrer" target="_blank">Money for the Rest of Us Plus</a>Show Notes<a href="https://www.researchaffiliates.com/publications/articles/1064-equity-risk-premium-myths" rel="noopener noreferrer" target="_blank">The Equity Risk Premium: Nine Myths (JPM Series) by Rob Arnott—Research Affiliates</a><a href="https://www.researchaffiliates.com/publications/articles/1065-revaluation-alpha-is-fake-alpha" rel="noopener noreferrer" target="_blank">The Greatest Scourge in Factorland: Revaluation Alpha = Fake Alpha (JPM Series) by Rob Arnott—Research Affiliates</a><a href="https://www.nber.org/system/files/working_papers/w28253/w28253.pdf" rel="noopener noreferrer" target="_blank">PASSIVE INVESTING AND THE RISE OF MEGA-FIRMS by Hao Jiang, Dimitri Vayanos, and Lu Zheng—NBER</a><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4928631" rel="noopener noreferrer" target="_blank">Limits to Diversification: Passive Investing and Market Risk&nbsp;by Lily H. Fang, et al.—SSRN</a>Related Episodes<a href="https://moneyfortherestofus.com/503-us-stocks-overhyped-expensive/" rel="noopener noreferrer" target="_blank">503: U.S. Stocks Have Never Been This Overhyped or Expensive</a><a href="https://moneyfortherestofus.com/500-sp-500-index/" rel="noopener noreferrer" target="_blank">500: The S&amp;P 500 Index and the Decade Ahead</a><a href="https://moneyfortherestofus.com/468-japans-34-year-market-underperformance/" rel="noopener noreferrer" target="_blank">468: Lessons from Japan’s 34 Years of Stock Market Underperformance</a><a href="https://moneyfortherestofus.com/390-blackrock-vanguard-too-powerful/" rel="noopener noreferrer" target="_blank">390: Are BlackRock and Vanguard Too Big and Powerful?</a><a href="https://moneyfortherestofus.com/234-index-dont-herd/" rel="noopener noreferrer" target="_blank">234: Index But Don’t Herd</a> See Privacy Policy at <a href="https://art19.com/privacy" rel="noopener noreferrer" target="_blank">https://art19.com/privacy</a> and California Privacy Notice at <a href="https://art19.com/privacy#do-not-sell-my-info" rel="noopener noreferrer" target="_blank">https://art19.com/privacy#do-not-sell-my-info</a>.

<description>
 &lt;p&gt;How asset class returns move in cycles with periods of above-average returns followed by periods of lower returns. How has the rise of passive indexing led to higher stock valuations, and what does that mean for markets?&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Sponsors&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://netsuite.com/david" rel="noopener noreferrer" target="_blank"&gt;NetSuite&amp;nbsp;&lt;/a&gt;- Download the CFO’s Guide to AI and Machine Learning&lt;/p&gt;&lt;p&gt;&lt;a href="https://legalzoom.com/" rel="noopener noreferrer" target="_blank"&gt;LegalZoom - Use code David10 to 10% off&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Insiders Guide Email Newsletter&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;Get our&amp;nbsp;&lt;a href="https://moneyfortherestofus.com/insiders-guide/" rel="noopener noreferrer" target="_blank"&gt;free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Our Premium Products&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://assetcamp.com/" rel="noopener noreferrer" target="_blank"&gt;Asset Camp&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://moneyfortherestofus.com/hub/" rel="noopener noreferrer" target="_blank"&gt;Money for the Rest of Us Plus&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Show Notes&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://www.researchaffiliates.com/publications/articles/1064-equity-risk-premium-myths" rel="noopener noreferrer" target="_blank"&gt;The Equity Risk Premium: Nine Myths (JPM Series) by Rob Arnott—Research Affiliates&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://www.researchaffiliates.com/publications/articles/1065-revaluation-alpha-is-fake-alpha" rel="noopener noreferrer" target="_blank"&gt;The Greatest Scourge in Factorland: Revaluation Alpha = Fake Alpha (JPM Series) by Rob Arnott—Research Affiliates&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://www.nber.org/system/files/working_papers/w28253/w28253.pdf" rel="noopener noreferrer" target="_blank"&gt;PASSIVE INVESTING AND THE RISE OF MEGA-FIRMS by Hao Jiang, Dimitri Vayanos, and Lu Zheng—NBER&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4928631" rel="noopener noreferrer" target="_blank"&gt;Limits to Diversification: Passive Investing and Market Risk&amp;nbsp;by Lily H. Fang, et al.—SSRN&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Related Episodes&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://moneyfortherestofus.com/503-us-stocks-overhyped-expensive/" rel="noopener noreferrer" target="_blank"&gt;503: U.S. Stocks Have Never Been This Overhyped or Expensive&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://moneyfortherestofus.com/500-sp-500-index/" rel="noopener noreferrer" target="_blank"&gt;500: The S&amp;amp;P 500 Index and the Decade Ahead&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://moneyfortherestofus.com/468-japans-34-year-market-underperformance/" rel="noopener noreferrer" target="_blank"&gt;468: Lessons from Japan’s 34 Years of Stock Market Underperformance&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://moneyfortherestofus.com/390-blackrock-vanguard-too-powerful/" rel="noopener noreferrer" target="_blank"&gt;390: Are BlackRock and Vanguard Too Big and Powerful?&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;a href="https://moneyfortherestofus.com/234-index-dont-herd/" rel="noopener noreferrer" target="_blank"&gt;234: Index But Don’t Herd&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;br&gt;&lt;/p&gt;&lt;p&gt;See Privacy Policy at &lt;a href="https://art19.com/privacy" rel="noopener noreferrer" target="_blank"&gt;https://art19.com/privacy&lt;/a&gt; and California Privacy Notice at &lt;a href="https://art19.com/privacy#do-not-sell-my-info" rel="noopener noreferrer" target="_blank"&gt;https://art19.com/privacy#do-not-sell-my-info&lt;/a&gt;.&lt;/p&gt;
 </description>

How asset class returns move in cycles with periods of above-average returns followed by periods of lower returns. How has the rise of passive indexing led to higher stock valuations, and what does that mean for markets?

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Money for the Rest of Us Plus

Show Notes

The Equity Risk Premium: Nine Myths (JPM Series) by Rob Arnott—Research Affiliates

The Greatest Scourge in Factorland: Revaluation Alpha = Fake Alpha (JPM Series) by Rob Arnott—Research Affiliates

PASSIVE INVESTING AND THE RISE OF MEGA-FIRMS by Hao Jiang, Dimitri Vayanos, and Lu Zheng—NBER

Limits to Diversification: Passive Investing and Market Risk by Lily H. Fang, et al.—SSRN

Related Episodes

503: U.S. Stocks Have Never Been This Overhyped or Expensive

500: The S&amp;P 500 Index and the Decade Ahead

468: Lessons from Japan’s 34 Years of Stock Market Underperformance

390: Are BlackRock and Vanguard Too Big and Powerful?

234: Index But Don’t Herd




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Money For the Rest of Us

Indexing Bubble and Asset Class Returns Still Revert to the Mean

Indexing Bubble and Asset Class Returns Still Revert to the Mean

Description