The Meb Faber Show - Better Investing BlackRock’s Rick Rieder - Rethinking Risk Into 2026 | #609
47 snips
Dec 12, 2025 
In this discussion with Rick Rieder, Chief Investment Officer at BlackRock, listeners gain insights into the current market dynamics and the evolving economic landscape. Rieder shares his expectations for the Fed’s interest rates, drawing a parallel between investing and gambling. He emphasizes the significance of free cash flow in big tech, warns about the future of small caps, and highlights key sectors to watch. Rieder also draws lessons from tennis to illustrate the importance of timing and strategy in investment decisions.
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Year-End Liquidity Quirks
- Year-end market dynamics create odd liquidity and volatility patterns that feel meaningful but are calendar-driven.
- Meb Faber and Rick Rieder note markets often ease into January as flows from institutions reset and liquidity returns.
Rivers Of Free Cash Flow
- Big tech companies are producing unprecedented free cash flow that supports equity performance even at high multiples.
- Rieder warns high multiples mean higher volatility, though cash flow helps large caps withstand shocks.
Small Caps In The Shadow Of Tech
- Small caps struggle against digital incumbents and data-driven competition, making sustained outperformance unlikely.
- Rieder expects M&A and AI democratization to rescue select small companies, but broad small-cap exposure remains challenging.
