Ehren Stanhope, CFA of O'Shaughnessy Asset Management explains how custom indexing builds on direct indexing by integrating tax loss harvesting, ESG preferences, and quantitative equity factors. He discusses how platforms like Canvas enable personalized portfolio construction while maintaining benchmark alignment. Stanhope also shares insights on the implications of rising interest rates, inflation, and changing asset correlations for long-term investment strategy and risk management.

Marlena Lee, Global Head of Investment Solutions at Dimensional Fund Advisors, explains how her team bridges investment research with client needs through systematic, evidence-based approaches. Rather than chasing short-term market moves or stock-picking, Dimensional builds portfolios grounded in decades of academic research and practical data analysis. Lee highlights how the firm evaluates traditional factors—such as size, value, and profitability—while carefully testing new ideas to avoid data-mined results. She underscores the importance of looking beyond simple measures like correlations or Sharpe ratios, encouraging investors to dig deeper into underlying holdings, factor overlaps, and global perspectives. From the challenges of timing premiums to the distortions caused by mega-cap stocks, Lee emphasizes the value of strategic, long-term allocations over tactical shifts. Her remarks offer clarity on what true diversification means and how investors can navigate trade-offs between tracking error and long-term outperformance.

Welcome to the Financial Thought Exchange, where we bring you insights from the brightest minds in finance! In this episode, recorded live from the CFA Institute Annual Conference in Chicago, we are honored to sit down with Peter Lazaroff.

Peter is the author of "Making Money Simple" and the Chief Investment Officer at Plancorp Wealth Management, overseeing $7 billion in AUM. He is also the host of the fantastic "Long Term Investor" podcast.

In this deep dive, Peter shares his key takeaways from a panel on decoding investor behavior. We discuss how behavioral finance goes beyond just identifying biases, moving towards strategies that truly help clients feel more confident and content with their financial decisions.

We cover:

• The evolution of behavioral finance and its practical application in wealth management.

• How to tailor financial education across different generations, from Baby Boomers to Millennials.

• The distinct approaches to advice for inherited vs. self-made wealth, and why empathy is crucial.

• Peter's firm's philosophy of avoiding mistakes over chasing perfect returns, and the biggest "mistake" he focuses on mitigating: setting the wrong expectations.

• The role of risk aversion in portfolio design and how Plancorp customizes strategies based on a client's stock/bond split and liquidity profile.

• Why, despite advancements in behavioral finance, human errors will persist, and how technology might assist without replacing the essential human connection in financial advice.

Join us for a candid and insightful conversation that will change how you think about client relationships and investment strategy!

In this podcast episode, Mark Mills, a physicist, energy expert, and “tech guru,” argues that the hype around AI is justified but misunderstood, emphasizing its roots in statistical inference (which is not what humans do when they think). He explains that AI’s strength lies in handling fuzzy, human-like tasks, unlike traditional computing’s whiz-bang ability to calculate. This making AI transformative for automation.

Mills addresses concerns about AI displacing jobs, noting that automation historically eliminates some roles but creates others, with 60% of 1960s job categories gone by 2020, yet employment and wages rose. He predicts AI, combined with advancements in materials and machines, will drive a massive productivity boom over the very long run, akin to previous industrial revolutions like the 1920s. He notes that the universe is made up of only three things—matter, energy, and information—and that all three are undergoing simultaneous revolutions, a historically rare event.

In this episode of Financial Thought Exchange, host Larry Siegel interviews Mark Mills, a physicist turned energy and tech expert. Mills argues that there has never been a true energy transition, except for abandoning whale oil. Even as we pursue an energy transition, humanitycontinues to rely on traditional energy sources such as hydrocarbons, wood, even animal power. Mills criticizes the slow adoption of nuclear energy, attributing it to public fears and stringent regulation. He sees promise in new small reactor designs, such as molten salt reactors, while traditional reactor designs suffer from regulatory and technical constraints.

Mills uses the snail darter (which, it turns out, doesn’t exist) as an example of environmental policy gone amuck, hindering growth. He asks that policies weigh environmental considerations against the need for economic development. Mills emphasizes the need for affordable energy to support technologies like air conditioning in developing nations, noting that only increased wealth and advanced technology can achieve the resilience against climate challenges that we need.

In this episode of the Financial Thought Exchange podcast, Jason Pereira, host of the Fintech Impact Podcast and an advisor to technology and AI startups, delves into the evolving landscape of robo-advisors and the revolutionary impact of Artificial Intelligence (AI) in wealth management.

A lively debate on the state of the private credit market, recorded live from the CFA Institute Annual Conference! Financial historian Mark Higgins and alternative investment strategist Alfonso Ricciardelli face off on a critical question of whether the massive influx of capital into private credit is a dangerous bubble or a new, permanent structural shift.

Hosted by Lotta Moberg, this panel explores the risks of "herd behavior," the importance of setting realistic investor expectations, and the vast alpha opportunities in underserved markets. Mark shares historical context, while Alfonso provides a structural counterpoint. This discussion is essential for anyone seeking to understand the future of alternative investments and the crucial role of manager selection.

Elroy Dimson and Larry Siegel discuss the origins of long-term investing by medieval universities, then move to rates of return, both past and future, on stocks versus bonds – there are some surprises in the older data suggesting the equity risk premium may not be as high as it appears. Dimson recounts his involvement with long-term investors such as the Norwegian sovereign wealth fund, and presents lessons for the future. He concludes with “curiosity assets” such as wine, art, and postage stamps. (You should not invest in postage stamps.)