Clay is joined by Rob Arnott to discuss the Fundamental Index, the equity risk premium, and where Rob believes we’re at in the value cycle. Rob Arnott is the founder and chairman of Research Affiliates, actively involved in research, portfolio management, product innovation, and client interactions. He is on the Executive Committee and co-portfolio manager for the PIMCO All Asset and RAE™ funds. Rob has worked to connect academic theorists with financial markets, challenging conventional wisdom to find value-adding solutions for investors. IN THIS EPISODE YOU’LL LEARN: 0:00:00 - Intro 0:01:09 - The Fundamental Index 0:08:23 - The source of outperformance 0:16:37 - Myths of the equity risk premium 0:27:15 - Short-term versus long-term forecasting 0:31:43 - Where we are in the value cycle 0:36:55 - The impact of elections 0:44:17 - Nixed: The upside of getting dumped 0:55:38 - How a company gets added to the S&P 500 0:59:31 - Outro 🤝 Network with like-minded value investors and get new stock ideas by joining the TIP Mastermind Community. https://www.theinvestorspodcast.com/mastermind/ 📊 Add the Fundrise Flagship Fund to your portfolio in just minutes and with as little as $10. http://fundrise.com/wsb 💰Click here to download your FREE guide to Stop Worrying About Your Finances In 4 Simple Steps: https://www.theinvestorspodcast.com/subscribe-youtube/ ▶️ RELATED EPISODES: - How to Navigate Market Cycles | Insights from Howard Marks: https://youtu.be/GSdaNm-SyGU - The SECRET to Maximum Returns: Mastering the Market Cycle by Howard Marks: https://youtu.be/yj7X4P9HOtI - Navigating Market Cycles w/ David Stein: https://youtu.be/umRmetsuuY8 - Intelligent & Rational Long-Term Investing w/ François Rochon: https://youtu.be/0eOzPgsmD2A - Long-Term Compounding w/ Chris Mayer | Constellation Software, Topicus, & Lumine: https://youtu.be/1GnT1jxO8uA 🎧 Listen to our episodes here: https://open.spotify.com/show/28RHOkXkuHuotUrkCdvlOP 🖊️ Access the transcript and learn more about the guest here: https://www.theinvestorspodcast.com/episodes/long-term-market-cycles-w-rob-arnott/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ABOUT OUR SHOW 🎙 On We Study Billionaires, we interview and study famous financial billionaires including Warren Buffett, Bill Gates, and Ray Dalio. We teach you what we learn and how you can apply their investment strategies in the stock market. 🌍 Website: https://www.theinvestorspodcast.com/we-study-billionaires/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ 📚OUR FREE INVESTING COURSES/RESOURCES https://www.theinvestorspodcast.com/tip-academy/ 📊TRY OUR STOCK INVESTING TOOL: TIP FINANCE https://www.theinvestorspodcast.com/tip-finance/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ❗ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.