Jason Hsu – The Market Can Be Crazy for Longer than You Have the Conviction

<p><strong>BIO: </strong>Jason Hsu is the founder, chairman, and CIO of Rayliant Global Advisors (RGA), a global investment management group with over US$15+ billion in assets managed using its strategies as of June 30, 2022.</p><p><strong>STORY:</strong> Jason bet against the GameStop short squeeze and learned that John Maynard Keyens’ saying that “markets can remain irrational longer than you can remain solvent” still holds true.</p><p><strong>LEARNING:</strong> The market can be crazy for longer than you have the conviction to stay invested. Apply position constraints and diversify.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“In the short run, the market can really stay crazy for longer than you have the money to stay on. And if you forget that, the market will remind you in as painful of a way as possible.”</strong></blockquote><blockquote class="ql-align-center">Jason Hsu</blockquote><p>&nbsp;</p><h2>Guest profile</h2><p><a href="https://www.linkedin.com/in/jasonchsu/" rel="noopener noreferrer" target="_blank"><strong>Jason Hsu</strong></a> is the founder, chairman, and CIO of <a href="https://rayliant.com/" rel="noopener noreferrer" target="_blank">Rayliant Global Advisors (RGA)</a>, a global investment management group with over US$15+ billion in assets managed using its strategies as of June 30, 2022. Rayliant applies quantitative methods to access behavioral-based alpha prevalent in inefficient markets like China. Jason also co-founded <a href="https://www.researchaffiliates.com/home" rel="noopener noreferrer" target="_blank">Research Affiliates</a>, a smart beta and asset allocation leader with over US$143 billion in assets managed using its strategies.</p><h2>Worst investment ever</h2><p>GameStop is a sleepy, almost dead brick-and-mortar retail store selling video games that come in a DVD ROM you put into your laptop to play. It sells cartridges for your Nintendo. In a world where online games are reigning, GameStop is definitely a dying business, and the stock price shows it.</p><p>Tw