Cliff Asness on How Markets Got Dumber in the Last 10 Years

In this episode of the Odd Lots podcast, Tracy Alloway and Joe Weisenthal interview Cliff Asness, co-founder and CIO of AQR, to discuss the increasing irrationality in financial markets over the past decade. Asness shares his insights on the efficient market hypothesis, the impact of retail investors and social media on market behavior, and the role of AI in investment strategies. The conversation explores the challenges of maintaining a rational investment approach in an increasingly speculative environment, the pain of enduring long drawdowns, and the shift from the wisdom of crowds to the madness of mobs due to social media's influence. They also touch on sports betting, multi-manager strategies, and the surprising lack of impact from rising interest rates on speculative market behavior.