Welcome to the Mebb Fabor Show, where the focus is on helping you grow and preserve your wealth.

Join us as we discuss the craft of investing

and uncover new and profitable ideas,

all to help you grow wealthier and wiser.

Better investing starts here.

Mepp Faber is the co-founder and chief investment officer at Cambria Investment Management.

Due to industry regulations, he will not discuss any of Cambria's funds on this

podcast.

All opinions expressed by podcast participants are solely their own opinions and do not

reflect the opinion of Cambria Investment Management or its

affiliates. For more information visit cambria Investments.com.

Welcome podcast friends it's time for another me episode which means you get to hear my sweet lovely voice

Hopefully at 2X speed you guys might even be able to do 2.5 or 3 x speed at this point with me. I talk so slow and a monotone. By the way, Overcaste even has a feature called

Smart Speed that lets you reduce the time, although I think my favorite apps right now are

breaker and radio public. I go back and forth.

Anyway, today we have a fun one. You guys have probably heard me talk about this before.

So if you feel like you've heard me talk enough about valuations, you could probably skip it.

But for those of you that haven't, this is an update to a post that we published back in 2016, and it's one of the most often heard criticisms of one of our favorite metrics,

the K-P ratio, and a lot of people repeat it over and over and over again,

so I think this is a fun framework with which

to think about how to use valuation. A lot of people say you can't use the cape ratio for market timing or for anything really but this is a different way to think about it that I think is a lot of fun. So buckle in today's topic,

title of the podcast, you would have missed 961% in gains and using the K-P ratio. And that's a good thing. Let's get started. 961

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