WCI #170: Rick Ferri versus Paul Merriman Part 2

The podcast explores factor investing, contrasting views on incorporating small, value, and momentum factors into investment portfolios. Rick Ferri and Paul Merriman debate the merits of tilting portfolios toward small-cap value stocks, with Ferri advising against abandoning such a strategy mid-course and Merriman highlighting the importance of long-term data over recent performance. They address questions about Vanguard's total stock market index fund and the underperformance of factor investing on companies like DFA and AQR. The discussion also covers the Fed's quantitative easing strategy, its impact on bond returns, and alternative investment options like preferred stocks and high-dividend yield stocks. Both guests emphasize the need for a long-term investment strategy that investors can adhere to consistently.