Prof. William Goetzmann: Learning from Financial Market History (EP.248)

<p class="p1">How the financial system works and how we interact with it has grown in complex ways and is a fascinating but nuanced topic. To guide us through the history of the economy is Professor<strong> </strong>William Goetzmann, who is an expert in finance, economics and art history, and whose research has been featured in top publications. As a highly respected scholar, he's authored numerous books on topics such as real estate and behavioural finance. It is fair to say Professor Goetzmann's work has left a significant impact on both academia and the world. In our conversation, we dive into financial market history and explore more than just broad market returns. We unpack the fascinating phenomenon of economic bubbles and booms, and how they have evolved and shaped the financial system. He also shares crucial insights from the past and advice for investors looking to leverage the market. And to wrap things up, Professor Goetzmann shares his views on money after digging deep into its historical roots. Tune in to unlock the secrets of the past and gain valuable insights for the future as we journey through the fascinating world of economic history. Tune in now!</p> <p class="p1"> </p> <p class="p1"><strong>Key Points From This Episode:</strong></p> <p class="p1"> </p> <p class="p1">•    Why is it important to collect and examine long-term historical returns data, and how useful the findings can be for today’s market. <strong>(0:03:21)</strong></p> <p class="p1">•    The furthest back in time that Professor<strong> </strong>William Goetzmann has looked at equity returns and how much of an issue survivorship bias is in long-term historical data. <strong>(0:05:44)</strong></p> <p class="p1">•    Reasons for the United States market trends concerning equity risk premiums and his approach to forecasting long-term returns of both stocks and bonds. <strong>(0:11:02)</strong></p> <p class="p1">•    Whether current discount rates are better for estimating future returns than long-term historical returns. <strong>(0: