We spend the bulk of today’s episode considering whether Wealthsimple’s use of long bonds and low volatility stocks is really protecting their clients’ downside, and summing up recent arguments by Cliff Asness and AQR leveled against critiques on value investing. Before that, we kick things off with thoughts on why Elon Musk aims to have no possessions, before looking at the links between empathy and the theory of relativity as well as some productivity secrets in recent books by Charles Duhigg and Shane Parrish. Next up, we briefly address a bunch of listener questions on factor tilting, and ETFs concerning COVID-19, the Smith Maneuver, and more! A final listener question about Wealthsimple’s claim mentioned above leads our hosts to wonder whether volatility and drawdown are good measures of risk. Ben made a few models to help answer this question which tested consumption models as another possible measure and brings up an interesting point about the significance of considering long bonds from an expected return or a risk parity perspective. From there, we move to the investment topic of the week – the historic state of value investing. This is a contentious topic with recent papers by Cliff Asness and AQR both weighing in and you’ll hear Ben and Cameron distill the main points from both. We hear about medium-term odds being on the side of value, and some great arguments showing common critiques leveled at value investing to be premature. Finally, Cameron takes us through the psychometric profiling side of measuring risk tolerance before telling listeners why they shouldn't make investment decisions based on reckless critiques. Tune in to get it all! Key Points From This Episode: Books From Today’s Episode: The Great Mental Models Vol. 1 — https://amzn.to/3cx8lFl The Great Mental Models Vol. 2 — https://amzn.to/2T1yVPt Smarter, Faster, Better: The Secrets of Being Productive — https://amzn.to/2zG3VNR The Checklist Manifesto — https://amzn.to/2WsLzsI Why Your World Is About to Get a Whole Lot Smaller — https://amzn.to/2xZ7PRy Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website - https://rationalreminder.ca/podcast/98 Elon Musk on The Joe Rogan Show — https://www.youtube.com/watch?v=RcYjXbSJBN8 Shane Parrish — https://fs.blog/about/ The Great Mental Models Vol. 1 — https://amzn.to/3cx8lFl The Great Mental Models Vol. 2 — https://amzn.to/2T1yVPt Charles Duhigg — https://charlesduhigg.com/ Smarter, Faster, Better: The Secrets of Being Productive — https://amzn.to/2zG3VNR The Checklist Manifesto — https://amzn.to/2WsLzsI Factor Investing with ETFs — https://www.pwlcapital.com/wp-content/uploads/2019/03/PWL-WP-Felix-Factor-Investing-with-ETFs_08-2019-Final.pdf Larry Swedroe — https://twitter.com/larryswedroe Is (Systemic) Value Investing Dead? by Cliff Asness— https://www.aqr.com/Insights/Perspectives/Is-Systematic-Value-Investing-Dead Is (Systemic) Value Investing Dead? by AQR — https://www.aqr.com/Insights/Research/Working-Paper/Is-Systematic-Value-Investing-Dead Value and Momentum Everywhere — https://www.aqr.com/Insights/Datasets/Value-and-Momentum-Everywhere-Factors-Monthly Why Your World Is About to Get a Whole Lot Smaller — https://amzn.to/2xZ7PRy The Rational Reminder is presented as an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The funds and portfolios discussed are examples only and may not be appropriate for your individual circumstances.