In short
Hard Lessons with Rick Rieder—how to think about conviction, market timing, and surviving when markets are wrong longer than theory predicts.
Guest backgrounds
Rick Rieder is BlackRock’s CIO for Global Fixed Income and head of the Global Allocation Investment Team, overseeing nearly $3 trillion in assets; he’s influential on interest rates, inflation, and market structure.
Key claims
investors aren’t “in the business of being right,” but of generating returns; market perception can remain wrong for longer; efficient markets theory is criticized as far from the truth; firms must survive because being out of capital can happen before markets catch up.
Notable examples
none specific beyond the efficient markets thesis and the “wrong longer” survival argument.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOInvesting Philosophy: Focus on Returns
0:46 to 1:15
Rick Rieder discusses the importance of generating returns over merely being right.
“I've learned over time that we're not in the business of being right.”
Transcript
Automatic transcript. May contain errors.0:00Hi, I'm Seth Carpenter, Global Chief Economist and Head of Macro Research at Morgan Stanley. On this show, you usually hear me talking about the big picture, the global forces that move markets. But recently, for a new series from Morgan Stanley called Hard Lessons, I got to sit down with Rick Rieder. As BlackRock's CIO for Global Fixed Income and the head of the Global Allocation Investment Team, Rick helps to oversee nearly$3 trillion in assets. He's an influential voice on interest rates, inflation, and market structure. In our conversation for Hard Lessons, I wanted to get to the core of how he thinks as an investor.
0:37He shared a philosophy on conviction and market timing. And I have to say, I've been thinking about that ever since we finished recording. Have a listen.
0:46Rick Rieder:I've learned over time that we're not in the business of being right. We're in the business of generating return for clients. And what happens is the market perception can stay wrong longer. And I remember studying as you did in school, the efficient markets thesis. I actually think they should throw that out because that is so far from the truth. You know, I think markets are wrong a ton, but you've got to survive. And you could be out of capital by the time the markets get it in theory right. For the rest of that conversation, find hard lessons on your favorite podcast platform. we've put links in the show notes.
From the publisher
Introducing a recent episode of Hard Lessons, featuring Rick Rieder, BlackRock’s CIO for Global Fixed Income and Head of the Global Allocation Investment Team, in conversation with Seth Carpenter, Global Chief Economist and Head of Macro Research at Morgan Stanley.
Watch and listen on your favorite podcast platform.