Excess Returns

Excess Returns
  • 0.0 (0)
  • Investing
  • Weekly

Excess Returns is dedicated to making you a better long-term investor and making complex investing topics understandable. Join Jack Forehand, Justin Carbonneau and Matt Zeigler as they sit down with some of the most interesting names in finance to discuss topics like macroeconomics, value investing, factor investing, and more. Subscribe to learn along with us.

  1. 20 hr ago

    Fidelity’s Jurrien Timmer on AI Spending, Bond Yields and the Next Phase of the Bull Market

    Jurrien Timmer of Fidelity explains how he reads a stock market correction by looking at what has changed in earnings, interest rates and the price investors will pay for future growth. A selloff driven by higher rates can look much like one driven by fears of slower growth on a stock chart. The difference matters when you’re counting on bonds to cushion the decline. Jurrien joins Justin Carbonneau and Jack Forehand to put the AI investment boom in that historical context. The companies building data centers once had enough cash left over to buy back large amounts of their own stock. Now much of that cash goes back into the business. He explains why a slower buildout could help some of the biggest spenders, and how a semiconductor stock can look cheap just as its earnings are peaking. They also look beneath the S&P 500, where a handful of large companies can pull the index lower even as most stocks remain in uptrends. Jurrien discusses what higher bond yields offer a long-term investor, why he considers gold and other diversifiers alongside stocks and bonds, and how rebalancing can turn a market decline into an opportunity to buy when others need to sell. Topics covered: - What CoreWeave’s bonds signaled about the cost of financing AI infrastructure - Why semiconductor earnings and price-to-earnings ratios can move in opposite directions - How Treasury yields affect the price investors will pay for stocks - What the 1994 correction reveals about strong earnings in a rising-rate environment - How Jurrien Timmer’s investment clock pairs earnings growth with financial conditions - Why bonds can provide income even when their value as a hedge changes - How gold, commodities and other diversifiers fit into a 60/20/20 portfolio - How the shift from buybacks to capital spending changes the economics of owning the Magnificent Seven - What market breadth and long-term valuations suggest about opportunities beyond the largest U.S. stocks Chapters: 00:00 The AI buildout meets the limits of financing 07:44 Semiconductor cycles and peak earnings 11:57 The Fed model and the competition between stocks and bonds 19:16 Growth scares, rate scares and inflation risk 24:01 The investment clock and the stock market’s influence on growth 29:00 Bond income and the case for a 60/20/20 portfolio 34:27 Real yields, fiscal risk and Fed policy 42:57 What comparisons with 1994 and 1999 can tell us 47:23 From share buybacks to AI capital spending 55:58 Rebalancing when other investors are selling Learn more about the Excess Returns podcast network: https://excessreturns.co No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.

  2. 1 day ago

    Stock Investors Fear an AI Bubble. Bond Investors Fear Inflation. How Can You Diversify Without Selling Them?

    Corey Hoffstein and Adam Butler explore why diversification is hard to stick with and how return stacking changes what investors can hold alongside stocks and bonds. When stocks keep climbing, a strategy that trails them for years can feel like a mistake. When inflation pushes stocks and bonds down together, the reason for owning something different gets easier to see. Drawing on their Return Stacked symposium, the two join Matt Zeigler to discuss which risks are worth adding to a portfolio. Corey explains why even a strategy with little connection to the stock market can lose money on the day stocks fall. Adam revisits 2008, when some hedge funds suspended withdrawals just as investors needed cash to rebalance. They use managed futures to show how return stacking works. An investor can keep the stock and bond exposure of a 60/40 portfolio and use futures to add another strategy. That introduces leverage and makes two questions especially important. What will the portfolio need to hold as collateral, and can the investor stay with the strategy through a long drawdown? Topics covered: - What Corey Hoffstein took from Cliff Asness’s early experience running AQR - Why an inflation shock can hurt stocks and bonds at the same time - How Adam Butler adds managed futures while keeping a portfolio’s stock and bond exposure - Why the same leverage can produce very different outcomes depending on the strategy added - The difference between low correlation and protection during a stock market crash - What went wrong when institutions paired liquid futures with illiquid hedge funds in 2008 - How holding both exposures in one fund changes collateral management and rebalancing - Why managed futures can fit alongside stocks, bonds or gold - How long a diversifier can disappoint before an investor gives up on it Return Stacked research https://www.returnstacked.com/ Return Stacked ETFs https://www.returnstackedetfs.com/ Seven Thoughts on Running Big Money for the Long-Term | Cliff Asness https://www.integrityia.com/wp-content/uploads/2014/06/Seven-Thoughts-on-Running-Big-Money-For-the-Long-Term-2009.pdf Corey Hoffstein’s Flirting with Models podcast https://www.flirtingwithmodels.com/episodes Corey Hoffstein on X https://x.com/choffstein Adam Butler on X https://x.com/gestaltu Return Stacked Portfolio Solutions on LinkedIn https://www.linkedin.com/company/return-stacked-portfolio-solutions Chapters: 00:00 Corey Hoffstein on Cliff Asness and investing for the long run 07:15 Adam Butler on AQR’s early years 12:58 When inflation hurts both sides of a 60/40 portfolio 17:21 How return stacking preserves stock and bond exposure 23:02 Choosing which risks to add with leverage 29:15 Why investors give up on diversifiers during drawdowns 33:27 Portable alpha and the liquidity failures of 2008 38:13 How a single fund manages collateral across both exposures 43:26 What decades of managed futures returns can tell us 50:37 Adam Butler on market timing and the case for spreading risk Learn more about the Excess Returns podcast network: https://excessreturns.co No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.

  3. 2 days ago

    Tech Is the Cheapest Since 2022. Walmart Is 46 Times Earnings. Where Is the Bubble?

    Chris Mayer and Robert Hagstrom explain how they decide whether a falling stock price has exposed a mistake or given them a chance to buy a business they already know well. Subscribe to the 100 Year Thinkers of Spotify⁠⁠⁠ ⁠⁠⁠Subscribe to the 100 Year Thinkers of Apple On 100 Year Thinkers, Matt Zeigler and Bogumil Baranowski ask both investors to put that judgment to work during a Nasdaq selloff. Robert starts with an unlikely pair: Nvidia and Walmart. What assumptions about growth and returns on capital would justify paying a higher earnings multiple for the retailer? Chris starts with free cash flow per share. He explains what he wants to know about a business before its stock drops 30% and he has to decide whether to buy more, hold on or sell. They give their winners the same scrutiny. Chris admits that a run of strong quarters can tempt him to spend all his research time on the companies that are struggling. Robert borrows a habit from Sherlock Holmes: look for the evidence that could overturn your favorite explanation. The conversation closes with a question for AI executives trying to win over a town that would host a data center. What does the community get in return for the power and water the facility will use? Topics covered: - Robert Hagstrom on why volatility rises when different investors start making the same trade - What the valuations of Nvidia and Walmart imply about their future earnings - Chris Mayer on free cash flow per share and Ben Graham’s voting machine and weighing machine - What readers of The Warren Buffett Way and 100 Baggers sometimes miss about their authors - How Robert Hagstrom uses detective work to test an investment thesis - Why Chris Mayer revisits companies that keep delivering strong results - What a concentrated portfolio asks of an investor and where indexing fits - How a watchlist helps both investors put a sharp price decline in context - When share buybacks make sense and what AI companies need to explain to local residents Robert Hagstrom’s research at EquityCompass https://www.equitycompass.com/author/robert Chris Mayer’s books at Woodlock House Family Capital https://www.woodlockhousefamilycapital.com/portfolio Chris Mayer on X https://x.com/chriswmayer Chapters: 00:00 What a Nasdaq selloff tells long-term investors 12:23 Ben Graham’s weighing machine and free cash flow per share 17:58 Who sets the example for patient investors today? 22:07 What readers miss about Robert Hagstrom and Chris Mayer 26:07 Sherlock Holmes and the evidence against an investment thesis 32:52 Studying winners as skeptically as mistakes 39:05 The case for picking businesses in an indexed market 44:36 Building a shopping list before prices fall 49:12 When a falling price earns a closer look 53:37 What shareholders need to hear from CEOs 1:02:07 Why data centers are a hard sell for their neighbors Learn more about the Excess Returns podcast network: https://excessreturns.co No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.

  4. 4 days ago

    This $1.5 Trillion Manager Expects More Fed Hikes. So Why Is He Still Bullish?

    Mike Hunstad, president of Northern Trust Asset Management, estimates that AI accounts for more than half the risk in the S&P 500. For an investor who sees real promise in AI, that poses a practical question. How much of the portfolio should depend on being right about it? Hunstad joins Jack Forehand and Justin Carbonneau to explain where he expects the payoff from AI to show up first. A company that uses AI to do the same work at a lower cost could see its margins rise well before the gains show up in GDP. He also explains how the stock market can move the economy in the other direction. If wealthy households have been spending some of their stock gains, a 20% equity decline could change what they buy. The conversation turns to what investors actually own. Hunstad uses the changing makeup of the Russell 1000 Value Index to show how a value fund can carry more technology exposure than its name suggests. He also shares the question he would ask an active manager after hearing their best stock picks. Which stocks did you underweight to pay for those bets, and do you have just as much conviction in those decisions? Topics covered: - What Treasury yields tell Mike Hunstad about inflation and the Fed’s choices - Why profit margins are his first test of whether AI spending is paying off - How the spending habits of wealthy households can turn a stock market decline into an economic slowdown - Where quality, value and low-volatility stocks fit in a portfolio with a large AI exposure - How much stock actually becomes available to investors when a large private company goes public - Why price-to-book can miss value in businesses built on intangible assets - How tracking a company’s suppliers, customers and peers changes the way investors measure momentum - When a factor looks cheap and why timing a shift into it is difficult - How the stocks a manager leaves out can overwhelm the gains from the ones they pick Chapters: 00:00 What stock prices and economic headlines are saying 06:45 The Fed, interest rates and the 10-year Treasury yield 11:11 AI productivity and the case for a positive supply shock 18:31 How a stock market decline could reach consumer spending 22:51 AI capital spending and the lessons of the dot-com era 28:54 Who captures the gains from AI, and how to measure them 34:18 Mega-IPOs and how much stock comes to market 38:36 What private markets add to a public equity portfolio 44:11 Measuring value and momentum through investor behavior 49:10 Can investors time their factor exposures? 57:16 The portfolio risk in stocks you leave out Learn more about the Excess Returns podcast network: https://excessreturns.co No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.

  5. 5 days ago

    Peter Boockvar on AI, the Wealth Effect and the Two-Speed Economy

    Peter Boockvar of OnePoint BFG Wealth Partners explains how AI demand can keep growing while the companies building data centers struggle to earn a return. CoreWeave has committed to years of lease payments. What happens if the price it can charge customers for computing power falls before those leases run out? The author of The Boock Report joins Matt Zeigler to trace who bears that risk. A lender, a chipmaker and an electrician building a data center all depend on the same project, but a slowdown reaches each of them differently. Boockvar draws on the history of the memory chip business to explain why a stock can look cheapest just as its earnings are peaking. They also look at the economy beyond AI. Boockvar compares what concert venues and hotel operators are hearing from customers, explains why reopening the Strait of Hormuz would still leave oil inventories to rebuild, and shares where he sees value in overseas stocks, healthcare and consumer staples. Topics covered: - How much hiring a data center supports during construction and after it opens - Why new memory chip supply matters to Micron shareholders even if demand keeps rising - How CoreWeave’s lease commitments and borrowing costs compare with IREN’s approach - Who could keep an existing data center running in a restructuring, and who loses orders if the next one never gets built - Why Peter Boockvar sees the Fed making smaller policy adjustments and watches the cost of financing AI projects - What sold-out concerts, travel bookings and hiring by industry reveal about the consumer - How depleted oil inventories could sustain demand for crude after shipping resumes - Where Peter Boockvar finds overlooked businesses outside the U.S. and in healthcare and consumer staples - What gold prices mean for miners’ margins and why refinancing matters for private credit Chapters: 00:00 How much of the economy depends on the AI buildout? 06:25 The workers who build data centers and the jobs that last 11:14 Micron and the trap of buying peak earnings 18:23 Who bears the losses if an AI infrastructure company defaults? 23:19 How AI financing costs enter the Fed’s rate debate 29:05 What concerts, hotels and hiring tell us about the consumer 37:03 Oil supply and the long job of rebuilding inventories 44:44 Looking overseas for overlooked stocks 49:42 The case for consumer staples and healthcare 56:52 Rush at Madison Square Garden and Peter Boockvar’s first concert Learn more about the Excess Returns podcast network: https://excessreturns.co No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.

  6. 6 days ago

    Last Call | Breaking Down the Post Election Decline

    Brent Kochuba, Ben Hunt, Aahan Menon and Eric Pachman join Matt Zeigler and Jack Forehand on November’s Last Call to make sense of the post-election selloff and the pressures facing businesses and households. Follow Last Call on Spotify⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Follow Last Call on Apple Podcasts⁠ Brent Kochuba explains why the weakest AI cloud stocks caught his eye even while the Nasdaq was rallying. Ben Hunt argues the midterms changed what investors could take for granted about presidential power, with governors gaining a bigger say in where data centers get built. Aahan Menon traces how a decline in AI shares could reach the dinner table as households that grew wealthier on paper rethink their spending. Eric Pachman follows a different cost all the way to the grocery aisle. When diesel gets more expensive, a grocer has to decide how much of the freight bill to absorb and how much to pass on to shoppers. Topics covered: - Why Brent Kochuba watched the weakest AI cloud stocks for confirmation of the rally - How negative dealer gamma can amplify selling and why November options expiration matters - What Ben Hunt means by an election making the limits of presidential power “common knowledge” - Why governors, electricity bills and local jobs matter to the next data center permit - Why Aahan Menon sees little immediate change in federal spending after the midterms - How stock gains support consumer spending and data center investment feeds corporate profits - How Eric Pachman uses the Producer Price Index to see how many industries face unusual cost increases - Who borrowed oil from the Strategic Petroleum Reserve and what it will take to return those barrels Guest research and links: Brent Kochuba | SpotGamma https://spotgamma.com/ SpotGamma on X https://x.com/spotgamma Ben Hunt | Perscient https://www.perscient.com/ Epsilon Theory on X https://x.com/EpsilonTheory Aahan Menon | Prometheus Research https://www.prometheus-macro.com/ Aahan Menon on X https://x.com/AahanPrometheus Eric Pachman | Data 4 The People https://www.data4thepeople.com/ How the Strategic Petroleum Reserve (SPR) Works in 2026 https://www.data4thepeople.com/p/spr-exchange Chapters: 00:00 A post-election rally gives way to a Nasdaq selloff 05:06 Brent Kochuba on unwinding election hedges 12:05 The AI cloud stocks that missed the bounce 16:38 Negative gamma and what could break the selling cycle 26:28 Ben Hunt on what the election made common knowledge 37:31 Aahan Menon on fiscal policy and the AI wealth effect 43:03 What a slowdown in data center spending would mean for profits 48:35 Eric Pachman on price pressure across industries 57:31 Tanker traffic, freight costs and emergency oil loans 1:05:10 Who gets a say when a data center comes to town? 1:10:48 Political compromise and a Philadelphia sports story Learn more about the Excess Returns podcast network: https://excessreturns.co No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.

  7. 6 Nov

    Mike Green on Passive Flows, Market Concentration and What Could Change the Cycle

    Mike Green explains how passive investing is reshaping stock prices, market concentration, and the way investors build portfolios. His argument: understanding which funds receive money—and how they allocate it—is increasingly essential to understanding the stocks those funds own. The founder of Tier1 Alpha Asset Management joins Matt Zeigler and Justin Carbonneau to connect retirement contributions, target-date funds, and index construction to the buying pressure behind the market's largest companies. He explains why he believes giant IPOs benefit from index mechanics, why liquidity does not keep pace with market capitalization, and how fund flows may help explain the behavior of value, size, and momentum. Green also walks through the investment framework he is building at Tier1: tracking thousands of funds, estimating their impact on individual securities, and making small portfolio tilts to account for those flows. The conversation explores what could interrupt retirement-driven buying, where fundamental analysis still matters, and how his planned strategies incorporate managed futures for diversification. Topics covered: - Why Mike Green thinks fund selection is increasingly shaping security prices - Why low-float index inclusions can create demand for giant IPOs - Why giant IPOs and smaller offerings can face very different sources of demand - Retirement contributions, target-date allocations, and the employment catalyst that could change flows - How passive flows may help explain value, size, and momentum-factor behavior - Why liquidity does not grow in proportion to market capitalization - Tier1's approach to tracking fund flows and making small portfolio tilts - Where discounted cash flow analysis fits in a market shaped by mechanical buying - Tracking error, managed futures, and Tier1's planned portfolio strategies - What employment trends could mean for the retirement contributions supporting passive flows Chapters: 00:00 Mike Green on the election and giant IPOs 05:44 IPO demand, passive buying, and weakening employment 11:18 Valuation in a market shaped by flows 16:46 Passive flows, value, and momentum 21:27 Tracking fund flows and building portfolio tilts 26:31 Inflation, energy bottlenecks, and pricing power 30:50 AI investment returns and the fiber-optic analogy 35:33 Fed policy, market rules, and Tier1's planned strategies 43:18 The K-shaped economy, AI jobs, and gig work 48:00 Political risks, optimism, and human agency 53:32 Closing thoughts and where to follow Mike Green Tier1 Alpha Asset Management https://www.t1acapital.com/ Mike Green on X https://x.com/profplum99 Learn more about the Excess Returns podcast network: https://excessreturns.co No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.

  8. 5 Nov

    Spending Is Up 7%. Paychecks Are Up 3%. What Happens When Stocks Stop Paying the Difference?

    Bob Elliott and Aahan Menon examine how stock-market wealth is helping consumers spend faster than their paychecks grow—and what that means for corporate profits if stocks stop rising. Elliott, co-founder of Unlimited, and Menon, founder of Prometheus Research, join Matt Zeigler to connect household spending, AI investment, and the earnings expectations built into markets. They discuss where their growth outlooks differ, why persistent inflation complicates the Fed's choices, and how bonds can look attractive against stocks while still looking unattractive against cash. The conversation also explores whether AI is producing the economy-wide gains needed to justify its investment boom, how forward spending commitments could reverse, and why both guests distinguish those risks from a repeat of the 2008 credit crisis. Topics covered: - What the midterm election could change for fiscal policy and data-center construction - Oil and AI as the competing forces behind inflation and growth expectations - Bob Elliott's distinction between peak growth and peak pricing of growth - How household wealth and drawing down savings support consumer spending - Aahan Menon on wages, workforce participation, immigration, and demographics - Why both guests think central banks are reluctant to deliver tighter policy - Bonds versus stocks, bonds versus cash, and Aahan Menon's inflation-nowcast rule - Bob Elliott's test for AI: accelerating productivity and revenue beyond the technology sector - How business investment and household spending feed corporate profits - Why AI commitments could weaken spending and earnings without a systemic credit crisis Chapters: 00:00 Bob Elliott and Aahan Menon on the election 04:25 Oil, AI, and the market's growth expectations 09:25 Peak growth pricing and the consumer spending gap 15:45 Household wealth, wages, and the labor market 20:08 The Fed's response to persistent inflation 24:12 Bonds versus stocks and bonds versus cash 30:28 Inflation nowcasts and the test for AI productivity 37:05 AI revenue expectations and the sources of profits 43:38 Credit risks and AI's forward spending commitments 50:38 Where Bob Elliott and Aahan Menon disagree Learn more about the Excess Returns podcast network: https://excessreturns.co No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.

See All (594)

Trailer

Hosts & Guests

About

Excess Returns is dedicated to making you a better long-term investor and making complex investing topics understandable. Join Jack Forehand, Justin Carbonneau and Matt Zeigler as they sit down with some of the most interesting names in finance to discuss topics like macroeconomics, value investing, factor investing, and more. Subscribe to learn along with us.

Information

  • Creator
    Excess Returns
  • Years Active
    2019 - 2026
  • Episodes
    594
  • Rating
    Clean
  • Copyright
    © 905628
  • Show Website
    Excess Returns

You Might Also Like