Owen Lamont on Bubble Fever, Index Gripers & Inefficient Markets | #552
Today's guest is Owen Lamont, a Portfolio Manager at Acadian Asset Management. He’s been on the faculty at Harvard, Princeton, Yale and the University of Chicago. He also writes the blog, Owenomics. In today's episode, Owen walks through how he analyzes market bubbles and if the U.S. is in a bubble today. He touches on the rise of passive investing, the gamification of trading and why the U.S. stock market is Koreafying. Owen also shares his view on closed-end funds, short-selling, AI and what Seinfeld can teach us about investing.
Key Points
- The U.S. stock market is showing signs of potential overvaluation, but not all the symptoms of a bubble are present yet, particularly the lack of a significant wave of IPOs and retail investor entry.
- Short selling is becoming increasingly difficult and less prevalent, which could lead to less efficient markets and make it harder to identify fraudulent companies.
- Retail investors often lose money due to overconfidence and speculative trading, while institutional investors, including hedge funds, tend to benefit from these retail missteps.
Follow Owen: Owenomics; LinkedIn
Resources: Owen on The Best Investment Writing Podcast No we are not in a bubble yet The unholy trinity of bubbles: valuation, volatility, and volume Lessons in financial economics from Seinfeld Don’t Blame Indexing for Your Problems Stupidity is our destiny: Historic closed-end fund overpricing The incredible cost of short selling The U.S. Stock Market is Koreafying. That’s Bad. United States Stock Market Confidence Indices
Chapters
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Transcript
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