Meb Faber on the Big Bear Market in Diversification and Tactical Allocation

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 18 October 2024

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

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Summary

For decades, investors have been told that diversifying is a good thing. You should hold a basket of stocks across different sectors and geographies, plus bonds, maybe some commodities or real estate, and so on. But, it turns out that you probably would have done better if you just bought large-cap US stocks in the form of an S&P 500 ETF like SPY. So why haven't diversified investments performed better? In this episode, we speak with Meb Faber, CIO of Cambria Investment Management, the host of the Meb Faber show, and the author of one of the most-downloaded research papers on SSRN. He says the last 15 years have "arguably been the worst period ever for an asset allocation portfolio.

Read more:
Great ‘Bear Market’ in Diversification Haunts Wall Street Pros
The Fate of the World’s Largest ETF Is Tied to 11 Random Millennials

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1:07.0	Podcasts, Radio News. Hello and welcome to another episodeisenthall. Hello and I'm Joe Weisenthall.
1:27.8	Joe, do you ever feel like the investment gods are punishing you?
1:31.8	Oh my god, I think about this all the time like you know when I first
1:36.4	started investing my money I'm like I'm going to be a very prudent diversifier and I'm going to
1:42.2	buy some bond funds some hard assets some
1:45.5	stock funds I'm going to invest internationally I'm going to invest a little bit in
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