19 episodes

Excess Returns is an investing podcast hosted by Jack Forehand and Justin Carbonneau, partners at Validea. Justin and Jack discuss a wide range of investing topics with the goal of helping those who watch and listen become better long term investors, all in twenty minutes or less per episode.

Excess Returns Jack Forehand & Justin Carbon…

    • Investing

Excess Returns is an investing podcast hosted by Jack Forehand and Justin Carbonneau, partners at Validea. Justin and Jack discuss a wide range of investing topics with the goal of helping those who watch and listen become better long term investors, all in twenty minutes or less per episode.

    Looking at Different Ways to Manage Risk

    Looking at Different Ways to Manage Risk

    There are many ways to manage risk in a portfolio. Traditional methods like blending stocks with bonds will work for most investors, but more creative methods can also make sense in some cases. One thing all risk management techniques have in common though, is that they come with trade offs. In this episode we look at some popular risk management approaches, and some lesser known ones, and examine the pros and cons of each. In addition to a traditional blended stock and bond approach, we also discuss the Permanent Portfolio, and more advanced quantitative approaches like Trend Following, Protective Asset Allocation and Generalized Protective Momentum.

    • 21 min
    Q&A: Answering Investors' Questions in Uncertain and Volatile Times

    Q&A: Answering Investors' Questions in Uncertain and Volatile Times

    With the market in the midst of a significant decline and uncertainty reaching levels we haven't seen in many years, we have received many questions about what is going on, and where we go from here. So we decided to do a Q&A episode to do our best to answer some of these questions. In this bonus episode, we talk about why the market has fallen so quickly, whether stocks are cheap after the recent decline, and whether can can rely on past fundamental data to pick stocks in a time like this. We hope you enjoy this bonus episode. If you have any questions you would like answered in future episodes, please email them to podcast@validea.com. 

    • 19 min
    Some Thoughts on Market Panics

    Some Thoughts on Market Panics

    The argument that investors should stay the course during market declines is an easy one to make. It also in most cases is the correct one, since figuring out when to get out of the market, and when to get back in, is very difficult for most investors to do. Despite the strength of the stay the course argument, those of us who make it can sometimes fail to deliver it with the proper recognition of the pain that most investors feel during market declines. In this episode, we talk about some important lessons to keep in mind during market panics and some strategies investors can use to manage them. 

    • 18 min
    Some Thoughts on the Struggles of Factor Investing in the Past Decade

    Some Thoughts on the Struggles of Factor Investing in the Past Decade

    The long-term evidence to support factor investing is compelling. Academic work has shown that factors like value and momentum have produced an excess return relative to the market over time. But what occurred in the most recent decade was in many ways the opposite of what has happened over the long-term. Almost anything an investor did to get away from buying large growth companies over that period was a detraction from returns. In this episode, we try to put the struggles of factor investing in context and talk about some lessons we can learn from this difficult decade. 

    • 13 min
    The Dangers of Headline Investing

    The Dangers of Headline Investing

    The recent market sell off related to the Coronavirus has many investors worried. And with good reason.  When panics like this set in, we all tend to focus on worst case scenarios and want to take action in response. But the process of analyzing headlines and figuring out how they will impact the market is challenging for even the most sophisticated investors. In this week's episode, we look at the dangers of investing based on headlines and why most investors are probably better off avoiding it. 

    • 16 min
    The Pros and Cons of Trend Following

    The Pros and Cons of Trend Following

    To say that the track record of market timers in general is dismal would be an understatement. There are so many factors that impact market returns that getting them all right is next to impossible. And even if you do, figuring out what is and is not already priced in can be an equally fruitless exercise. Despite the fact that forecasters have consistently failed to predict market turns, there is an option that can help to limit losses in major downturns and can be beneficial for some investors. Trend following has a long-term track record of both limiting major losses and reducing volatility. But like anything in investing, it comes with some trade offs. In this episode, we discuss why market timing is so difficult and take a detailed look at the pros and cons of trend following. 

    • 18 min

Customer Reviews

Andrew ODU ,

Excess return

Good insights into using quantitative approaches to gain excess return using value and other metrics

ForTHREE ,

Concise and Intelligent

Quick hit of information, basically a deeper dive into a classic Validea blog!

scottworxshop ,

???

Very Interesting!

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