99.9% Focus on the Wrong Question | Victor Haghani on Why Static Allocation Fails

In this episode of Excess Returns, Victor, the founder and CIO of Elm Wealth, discusses his journey from Long Term Capital Management to embracing passive investing, emphasizing the importance of asset allocation over stock picking. He shares his insights on constructing portfolios, incorporating dynamic indexing, and managing risk, highlighting the significance of understanding expected returns and the cost of risk. Victor also delves into market valuation, discussing the P-CAPE ratio and its implications for long-term investment strategies, while also addressing the impact of stock buybacks and market concentration on equity performance.