AQR's Cliff Asness on Stocks Value Gap, Nvidia, 'Inefficient' Markets

AQR Capital Management has kept a tilt toward the value strategy as the gap between the priciest and cheapest stocks remains wide, says co-founder Cliff Asness. That spread now stands at 80th percentile, meaning it was only wider in 20% of the historical data, compared to the 100th percentile during Covid, he said in an interview with Bloomberg's Dani Burger on the sidelines of Kepler Partners’s Fifth Annual Liquid Alternatives Summit in Wembley, London. “I would say things are still out of whack, but it’s not an arbitrage you can drive a truck through right now,” Asness said.
00:00:00 Paper on persistently wide valuation gap, inefficient markets
00:02:27 Crazy periods "getting crazier"; Nvidia; markets "out of whack"
00:05:12 How tech, social media can lead to less accurate pricing
--------
More on Bloomberg Television and Markets


Connect with Bloomberg Television on:

Connect with Bloomberg Business on:

More from Bloomberg:


Watch more on YouTube:

[joaofeiteira]

I hate interviews that have to end on the second. It's so disrespectful. The media is broken in so many ways.

[scoutbagel]

In my opinion<, based on what I learned in my college macroeconomics class, lowering inflation through cutting interest rates could actually hurt the middle class because when the FED lowers rates, borrowing becomes cheaper, increasing demand and pushing prices up. While lower rates might stimulate the economy in the short term, they risk driving up inflation in the long run, as demand would outpace supply. If the FED continues to print money and keeps rates low, inflation could spiral out of control, and our economy could face instability. Historically, when the FED lowers rates, it may boost GDP temporarily, but it can lead to long-term inflationary pressures. Anyone feeling the impact of these economic shifts should consider long-term trading strategies to protect their assets. My advice to anyone feeling the heat in this inflation, just trade long term more than ever, I have made over 720k from day trading with Aria Cookings in few weeks, this is one of the best medium to backup your assets incase it goes bearish..

[sambarrows]

The most important issue in investing now and this guy has studied it and can share significant insight, but you go to a commercial?

[aconsideredmoment]

Interrupted #2 and #3 to talk about NVIDIA. smh. Stated another way, the market can stay irrational (inefficient) longer than you can stay solvent.

[onothankyou]

Cliff is an incredibly smart person. However, I think one of the hardest parts about working with the markets is that you can get better as you proceed on your career, but not by as much as the markets change.

One of the biggest ways people misunderstand market efficiency is that it becomes more efficient at transferring *information* not *signal*. Information equals signal plus noise, so at times when noise is larger, more efficient information transfer means faster noise transfer.

[Ottoish]

Would have been better if she let him talk more, and interrupted less (just when he was on the cusp of crucial points, several times).

[bryanotieno]

Whether shares drop or gain one must remain invested

[gainer]

You can always earn gains in the EV sector. Hyliion up 12 % Mon... Lion Electric up 8 %... Rivian and Polestar up 2 %. NKLA.. Nikola...300 % yr over yr revenue growth.. Frey...QS ..Plug . Zapp..Xos Trucks.. Archer Evtol Jets.. Lillium Evtol Jets and more.

[KtnM]

Its Crazy, its gonna get thats when the crazy money is made....just get out before the music stop, dont try to time it.

[sumitomoOO]

Painful to watch this disrespectful interview....I am truly traumatized