Cliff Asness on How Markets Got Dumber in the Last 10 Years

Cliff Asness on How Markets Got Dumber in the Last 10 Years – Odd Lots

Mentioned

Bullish

QUANT— Quantitative strategies have performed strongly over the past five years, successfully adapting even in challenging value environments
AI— AI and machine learning, particularly natural language processing for analyzing corporate statements, has delivered strong real-world performance for multiple years

Bearish

VALUE— Markets have become structurally less efficient and more susceptible to periods of irrational behavior than in the past
RETAIL— Retail investors systematically underperform and transfer wealth to institutions, with increased retail participation creating more opportunities for professional investors
BETTING— Online sports betting is unsustainable for consumers with zero chance of average bettors making money
PASSIVE— Passive investing has theoretical limits as markets require active price discovery to function properly

Not investment advice.