The Derivative You still don’t have enough Trend Following or Foreign Equity exposure with Meb Faber
Grab your favorite trucker hat/baseball cap, and settle in for this episode where Jeff picks Meb Faber’s brain on everything from skiing to picking an investment advisor because they can get you on at Riviera Country Club. We’ve got Meb Faber back on the show to nominally talk about trend following – but as often happens with Meb – we get into a bunch from global equity exposure, to market cap weighting, to Japan's dot-com bubble, de-globalization, investing in U.S. stocks, and the value of trend in a low-inflation environment.
Meb and Jeff explore Meb’s first exposure to trend following (yes, it has a ski story attached) and discuss the optimal portfolio allocation to trend, and the problem with replicating private equity. They touch on passive investing, how to choose a trend-following fund, and the current state of the market. Plus listeners can gain insights into the ETF and RIA space, and speaking of space – hear about start-up investing in farmland and space — SEND IT.
Chapters:
00:00-02:00 = Intro
02:01-12:50 = Skiing in Japan to global market cap weighting & Japan’s real estate bubble
12:51-27:46 = De-Globalization, Why everyone’s overinvested in U.S. stocks, Value/Trend and inflationary environments
27:47-47:30 = First exposure to Trend Following, what’s the optimal portfolio & the problem with a private equity replication strategy
47:31-59:58 = Passive investing, how do you choose a trend following fund & current state of the market
01:00:19-01:06:13 = What’s going on in the ETF & RIA space – where is it headed?
01:06:14-01:12:47 = Start-up investing – Farmland & Space
01:12:48-01:17:49 = Mebs’ Top Ski Spots
From the Episode:
The Case for Global Investing | Meb Faber asks: Why aren't more investors allocated to trend following? | Journey to 100x
Guide to Trend Following whitepaper
Follow along with Meb on Twitter @MebFaber and check out mebfaber.com, and his podcast The Meb Faber show.
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