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Meb Faber - Quant Savant

The Business Brew

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Market Cap Waiting Is the Smart Thing to Do

Market cap waiting, this is te funny part as you think about a totally nonsensical investing strategy with no relation to fundamentals. The largest stocks in an index, market cap, way, at it doesn't matter if its sectors or countries, under perform that index by about three per centage points per for the next ten years. Just avoiding the big stuff, which is big because price went up, is one of the basics you can do. Why equal waiting out performs over time. Waiting based on dividends, waiting based on anything else, should do about a % or two. But the takeaways, bill, you need launch ron t f.

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