Taking Stock of Stock Myths

Topics - Equities Portfolio Risk and Performance Macroeconomics

There is risk in every investment. This episode delves into three specific kinds of equity risks that tend to weigh on investors: home bias, market timing and inflation. Hosts Gabe Feghali and Dan Villalon sit down with an expert on each one to help listeners understand how these risks can affect a portfolio. Roni Israelov, a principal at AQR, explains home bias, which is the tendency to invest more of your wealth in something in which you’re more comfortable, like U.S. assets for U.S. investors. AQR Principal Antti Ilmanen shares results of his extensive research on market timing, including when it works and when it doesn’t. And Ashwin Thapar, a macro portfolio manager at AQR, discusses why investors who are looking to address inflation risk might want to look beyond stocks.