Arnott: Value Traps Bite

Research

GMO - Investing in American Resilience (7 pages)

GMO’s Sam Klar argues that American reindustrialization could be an important driver of investment returns in the decade ahead. He explains why the S&P 500, with less than 60% of revenue from the U.S., is poorly positioned to capture it.

Syzygy Asset Management - Value Traps Are Painful ... Read the Footnotes (13 pages)

Syzygy’s Rob Arnott revisits Benjamin Graham’s Mr. Market to explain why a low valuation ratio alone can lead investors into value traps. Using four pairs of stocks, he shows how combining value, quality and momentum helps separate real bargains from cheap stocks.

Man Group - The Law of the Medes and Persians (6 pages)

Man Group revisits three long-held investment rules and asks whether each still holds today. Topics include why an inverted yield curve has not yet produced a recession and whether bonds still cushion portfolios during equity drawdowns.

Brookfield - The Evolution of Infrastructure Investing (14 pages)

Brookfield examines how digitalization, decarbonization and deglobalization are expanding the infrastructure opportunity set and reshaping institutional allocations. It explores why many portfolios remain skewed to core strategies and outlines income, diversified and growth-oriented approaches to building an infrastructure allocation.

Bonus Content

Citadel Securities’ Frank Flight explains what the midterms mean for the AI buildout and rates. Link

Susquehanna co-founder Jeff Yass argues there is no such thing as a stock market bubble. Link

Carta’s latest State of Private Markets shows rising valuations but fewer VC rounds closing. Link

The S&P 500’s annualized returns over the past 40 years top housing-price returns in every state and local market. Link

Schroders’ Duncan Lamont finds half of global stocks in a bear market in his latest Equity Lens. Link

Podcasts

Meb’s Corner

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