The Meb Faber Show - Better Investing John Davi, Astoria Advisors - Macro+Quant, Inflation & Global Diversification | #501
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Sep 27, 2023 
John Davi, CEO and CIO of Astoria Portfolio Advisors, discusses his macro plus-quant approach to the markets. Topics include his entrance into the ETF space, global diversification, opportunities in Europe and Japan, and focusing on after-tax after-inflation returns.
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Three-Input Macro+Quant Framework
- John Davi uses three inputs: business cycle, earnings & valuation, and sentiment to set strategic asset allocation.
- He combines that with a dynamic overlay of liquid alternatives to dampen volatility and tailor exposure.
Why Europe And Japan Look Attractive
- Davi sees Europe and Japan as cheap with improving earnings and positive estimate revisions relative to an expensive US market.
- He cites lagging inflation and rate cycles overseas as a catalyst for potential outperformance.
Focus On After-Tax, After-Inflation Returns
- Prioritize after-tax, after-inflation, risk-adjusted returns when building portfolios for clients.
- Use tax-loss harvesting and ETF wrappers to implement changes more tax-efficiently than SMAs when possible.