In the midst of a multi-front trade war, Wall Street has advised that investors shun emerging market stocks. Rob Arnott, the founder of Research Affiliates and “godfather” of smart beta investing, disagrees. It's why half of his personal portfolio now sits in developing-nation value stocks, and his firm’s models predict U.S. equities will only return half of a percentage point in real terms over the next decade. Bloomberg’s Chris Nagi, a Bloomberg markets executive editor, also joins the conversation to discuss what Federal Reserve Chair Jerome Powell’s “appropriate” comments mean for stocks.

Mentioned in this podcast: ‘Do They Have Enough Ammo?’: Markets Mull Potency of a Powell Put Pioneer of Yield-Curve Recession Indicator Says Don't Relax Yet Risk-On Is Back as Rally-Hungry Bulls Set Aside Trade Fears