On today’s episode, Clay is joined by Rob Arnott to discuss the Fundamental Index, the equity risk premium, and where Rob believes we’re at in the value cycle.Rob Arnott is the founder and chairman of the board of Research Affiliates. Rob plays an active role in the firm’s research, portfolio management, product innovation, business strategy, and client-facing activities. He is a member of the Executive Committee of the board. Rob is co-portfolio manager on the PIMCO All Asset and All Asset All Authority funds and the PIMCO RAE™ funds.Over his career, Rob has endeavored to bridge the worlds of academic theorists and financial markets, challenging conventional wisdom and searching for solutions that add value for investors.IN THIS EPISODE YOU’LL LEARN:00:00 - Intro02:02 - What the Fundamental Index is and how it has performed over the past two decades16:32 - How to calculate the equity risk premium23:44 - Why short-term forecasts are impossible to project accurately, but long-term forecasts are not27:50 - Where Rob believes we are in the value cycle44:03 - Why companies that get removed from the index tend to outperform those that get added49:21 - How companies get added to the S&P 500And so much more!Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Check out the Research Affiliates. Follow Rob on LinkedIn. Email Shawn at shawn@theinvestorspodcast.com to attend our free events in Omaha or visit this page. Follow Clay on Twitter. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter. Check out our We Study Billionaires Starter Packs. Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. 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