It has been said that the most dangerous words in investing are "this time is different". But sometimes a confluence of factors come together to significantly change the character of the market. In the best research paper we have read this year, Corey Hoffstein argues this is one of those times. In this interview, we go through all the details of Corey's argument and how they fit together to form a very compelling argument that this time might in fact be different. 
We discuss: 
- Why the "moneyness" of markets has greatly increased the interdependence between the stock market and the economy
- Why the rise of divergent investment strategies has increased market volatility 
- The role of the Federal Reserve policy in driving investors up the risk curve 
- How passive investing has impacted the market overall and the relative pricing of stocks within it
- The role of options dealers and how options buying and selling can exacerbate volatility
COREY'S BLOG 
https://blog.thinknewfound.com/
FOLLOW COREY ON TWITTER
https://twitter.com/choffstein
ABOUT THE PODCAST
Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.
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