Nine Unpopular Investing Beliefs That Evidence Suggests Are Right | Meb Faber
Excess ReturnsAugust 08, 202400:58:31

Nine Unpopular Investing Beliefs That Evidence Suggests Are Right | Meb Faber

In this episode of Excess Returns, we sit down with Meb Faber, founder of Cambria Investment Management, to discuss his unconventional views on investing that often go against mainstream opinions. We explore a wide range of topics, including the Federal Reserve's performance, dividend investing strategies, international diversification for U.S. investors, trend following, and the relationship between interest rates and stock market valuations. Throughout our conversation, Meb challenges common investing beliefs and provided evidence-based perspectives on various aspects of the market. We all can benefit from challenging our own strongly held investing beliefs and we hope this episode will help you do that as it did for us.

0:00 - Introduction
2:09 - "The Federal Reserve has done a good job"
5:04 - "Investing based on dividend alone is tax inefficient and a nonsensical investment strategy"
11:24 - "Everyone loves to complain about manipulation... markets are functioning as they always have"
14:10 - "Trend following strategies deserve a meaningful allocation to most portfolios"
18:47 - "A reasonable time frame to evaluate a manager or strategy is 10 or maybe 20 years"
26:43 - "U.S. investors should be allocating a minimum of 50% of their stock allocation to non-U.S. countries"
35:22 - "High stock market valuations are not justified by low interest rates"
38:58 - "Financial advisors and asset managers are 4x leveraged in the stock market and could/should hedge that exposure or even own no U.S. stocks"
47:14 - Discussion on the CAPE ratio
53:36 - Bonds may not always be a reliable hedge for stock market downturns

MORE INFORMATION ON CAMBRIA
https://www.cambriainvestments.com/

FOLLOW WARREN ON TWITTER
https://twitter.com/mebfaber

SEE LATEST EPISODES OF EXCESS RETURNS
https://www.excessreturnspod.com

FIND OUT MORE ABOUT VALIDEA CAPITAL
https://www.valideacapital.com

FOLLOW JACK
Twitter: https://twitter.com/practicalquant
LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN
Twitter: https://twitter.com/jjcarbonneau
LinkedIn: https://www.linkedin.com/in/jcarbonneau
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