Edward McQuarrie, Santa Clara University - Sometimes Stocks Beat Bonds, Sometimes Bonds Beat Stocks | #324

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 28 June 2021

⏱️ 77 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode 324, we welcome our guest, Dr. Edward McQuarrie, Professor Emeritus at Santa Clara University. In today’s episode, we hear why the ‘stocks for the long-run’ thesis may not be so true. Dr. McQuarrie found digital archives and older data that gives a different conclusion than what Professor Jeremy Siegel found. We walk through how stock and bond returns have changed over time and learn that bonds have outperformed stocks for decades in countries like France and Japan. We hear about Dr. McQuarrie’s ‘regime thesis,’ which says the risk/return profile of both stocks and bonds depends on what regime we’re in, both capable of outperforming or underperforming over any time horizon. Please enjoy this episode with Santa Clara University’s Edward McQuarrie. ----- This episode is sponsored by Bitwise. The Bitwise 10 Crypto Index Fund is the world’s largest crypto index fund. It holds a diversified portfolio of cryptoassets, including bitcoin, ethereum, and DeFi assets. Shares of the fund trade under the ticker "BITW" and are accessible through traditional brokerage accounts. Shares may trade at a premium or discount to net asset value (NAV). For more information: www.bitwiseinvestments.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Mepp Faber Show, where the focus is on helping you grow and preserve your wealth.
0:11.0	Join us as we discuss the craft of investing and
0:13.5	uncover new and profitable ideas all to help you grow wealthier and wiser.
0:17.2	Better investing starts here.
0:18.8	Matt Faber is the co-founder and chief investment officer at Cambria Investment Management.
0:23.3	Did it industry regulations, he will not discuss any of Cambria's funds on this podcast.
0:27.2	All opinions expressed by podcast participants are solely their own opinions and do not reflect the opinion of
0:31.2	Cambria Investment or its affiliates. For more information opinion of Cambria Investment Management or its affiliates.
0:33.4	For more information, visit Cambria Investments.com.
0:35.6	What's up y'all? We got a great show for you today. Our
0:41.8	guest is Professor Emeritas at Santa Clara University.
0:44.8	In today's show, we hear why the stocks for the long run thesis may not be so accurate.
0:50.8	Our guests found digital archives and older data that gives a different
0:54.4	conclusion than what others have found. We walk through how stock and bond
0:58.3	returns have changed over time and learned that bonds have outperformed stocks
1:01.6	for decades both here in the US and in other
1:04.4	countries like France and Japan. We hear about our guest regime thesis which says
1:09.2	the risk-return profile of both stocks and bonds depends on what regime we're in, both capable
1:14.7	about performing or underperforming over any time horizon.
1:18.7	American Farmland is disappearing at an alarming rate.
1:22.8	According to the USDA, the US has lost four acres of farmland per minute since 2000.
1:28.3	That's a landmass larger than the state of Florida,
	...

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