CapEx Bubble In Heart Of Stock Market | Dan Rasmussen on AI, PE, and “The Humble Investor”

Dan Rasmussen, founder and CIO of Verdad Advisers, joins Jack to share insights on value, magnificent 7, private equity & credit, and bonds, from his new book, “The Humble Investor: How to find a winning edge in a surprising world.” Recorded on February 4, 2025. Follow Jack Farley on Twitter https://x.com/JackFarley96 Follow Dan Rasmussen on Twitter https://x.com/verdadcap Follow Monetary Matters on: Apple Podcast https://rb.gy/s5qfyh Spotify https://rb.gy/x56dx5 YouTube https://rb.gy/dpwxez Timestamps 00:00 Intro 1:43 Beware Investing In Fads 4:16 What Will Return on Investment Be For The Spend? 11:52 Growth Doesn't Predict Growth 16:44 Why Value Investing Has Worked Internationally (But Hasn't Worked Recently in United States) 22:17 Private Equity 24:54 Is PE Really Better at Running Companies? 27:12 The Three Phases of Private Equity 32:14 Dan's Bear Case For Private Equity 34:04 Where Is The Pain in PE From Rising Rates? 37:55 Private Credit = Ticking Time Bomb? 40:58 Bond Market: Chase Quality, Not Yield 43:49 The History of Private Credit 48:58 Is It Possible To Predict Bubbles? 51:59 Why Have Small Cap Stocks Underperformed? 55:02 Why Many "Value Funds" Don't Capture True Value 57:30 Is Volatility Drag ("Variance Drag") A Real Thing? 1:00:47 Efficient Market Hypothesis, Dividend Discount Model and Capital Asset Pricing Model (CAPM): RANKED 1:07:50 Counter Cyclical Asset Allocation #stockmarket #valueinvesting #macroeconomics #hedgefund #privatecredit #privateequity