Rob Arnott & Cam Harvey on Passive Investing Risks, The AI Boom & Stimulus That Doesn’t Stimulate | #587

2025-06-20

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Today’s guests are Rob Arnott, founder and Chairman of the board of Research Affiliates, and Campbell Harvey, Head of Research at Research Affiliates and Professor of Finance at the Fuqua School of Business at Duke University. In today’s episode, Rob and Cam touch on the state of value investing in a megacap dominated market, emphasizing the potential consequences of large scale passive investing. They also touch on the rapid change presented by AI, what it may be capable of, and its impacts on how we should view investing. Finally, they address the global investing environment and macro trends, instability, and the role of government in changing world mar...

In today’s episode, Rob and Cam touch on the state of value investing in a megacap dominated market, emphasizing the potential consequences of large scale passive investing. They also touch on the rapid change presented by AI, what it may be capable of, and its impacts on how we should view investing. Finally, they address the global investing environment and macro trends, instability, and the role of government in changing world markets.

(0:00) Starts

(1:46) Introduction of Rob Arnott & Cam Harvey

(7:35) Passive investing risks

(14:22) The opportunity in small caps and foreign markets

(24:22) Similarities between today & the Dot-Com era

(34:43) REITs, gold and investor sentiment

(47:14) Government spending & US national debt concerns

(1:03:27) US debt service, defense spending, and financial crisis risks

(1:05:09) Cam on the inverted yield curve

(1:08:09) Closing remarks and listener feedback

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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more.