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#12: You May Be Getting Paid To Invest - Meb Faber Research - Stock Market and Investing Blog
Most investors LOVE to obsess over fees, as they should. But most investors also overlook a critical input to the total fee costs that could even result in a negative expense ratio, meaning, you get paid to own the fund! That sounds like something you’d see advertised on Instagram, right? Nope “Thirty-four ETFs earned a higher […]
#10 "You Can Replace The Bonds In The Traditional 60/40 Portfolio With Gold And It Makes No Difference" - Meb Faber Research - Stock Market and Investing Blog
If you read the headline of this article, you probably have the same thought as everyone else: “No CHANCE” Meaning, there is no way this headline is true. I mean, how many investors do you know with a portfolio that is 60% stocks and 40% gold? (Ok maybe a few crazy Canadians or Australians?) The […]
#11: You Don't Have to Own US Stocks - Meb Faber Research - Stock Market and Investing Blog
I view diversification not only as a survival strategy but as an aggressive strategy because the next windfall might come from a surprising place.” – Peter Bernstein What is the single most universally held belief in all of investing? Think about it for a minute. Our vote would be “Investors MUST own US stocks.” It […]
#9 - "Institutions Can't Beat A Basic Buy and Hold Allocation" - Meb Faber Research - Stock Market and Investing Blog
Pension funds’ annualized aggregate returns since 2000 have been virtually identical to a simple 60-40 index portfolio. That feels somewhat expected it seems, but what about the true crème de la crème, the top institutions. Surely they could beat a simple buy and hold allocation? Turns out, they really can’t. Below we recall an article […]
#8 - "Your Asset Allocation Doesn't Really Matter If You Have All The Main Ingredients...So What DOES Matter?" - Meb Faber Research - Stock Market and Investing Blog
If you’re like most investors, you’re asking the wrong questions. I was chatting with a group of advisors about a decade ago in La Jolla and a question arose. I’ll paraphrase: “Meb, thanks for the talk. We get a steady stream of salespeople and consultants in here hawking their various asset allocation models. Frankly, it […]
#6 - "The Stock Price Drops When The Company Pays A Dividend"" - Meb Faber Research - Stock Market and Investing Blog
Investors love passive income. They fantasize about sitting on the beach, drinking pina coladas while their dividend checks roll in. However, each dividend payment causes the stock price to drop by an equal amount. This is investing 101. Unfortunately, many individual investors (and a non-zero amount of professional investors) do not understand this fundamental concept. […]
#7 - "REITs and Gold Have Outperformed US Stocks This Century" - Meb Faber Research - Stock Market and Investing Blog
Let’s rewind to Y2K. Britney was topping the charts, people were hoarding water in prep for the digital apocalypse, and U.S. stocks had just finished a blistering 1990s bull market. The S&P 500 was invincible. Or so it seemed. But then reality hit. Tech bubble. 9/11. Two recessions. A housing collapse. Then out of the […]
#4 - "Bonds are NOT Safe Investments" - Meb Faber Research - Stock Market and Investing Blog
Most investors think of Treasury bills—the short-term, “risk-free” U.S. government debt—as the ultimate safe haven. No credit risk, highly liquid, guaranteed by Uncle Sam. This is all true on a nominal basis. T-bills have never had a drawdown or lost money. However we live in a “real” world, meaning, all that matters is “after inflation”, […]
#9 - "Institutions Can't Beat A Basic Buy and Hold Allocation" - Meb Faber Research - Stock Market and Investing Blog
Pension funds’ annualized aggregate returns since 2000 have been virtually identical to a simple 60-40 index portfolio. That feels somewhat expected it seems, but what about the true crème de la crème, the top institutions. Surely they could beat a simple buy and hold allocation? Turns out, they really can’t. Below we recall an article […]
#3: “How Long Can US Stocks Underperform Foreign Stocks?” - Meb Faber Research - Stock Market and Investing Blog
In our last piece, we examined just how long US stocks can go underperforming US bonds. The answer was, a lot longer than most could handle. But what about a more comparable asset – stocks outside the US? US stocks have trounced foreign stocks for as long as anyone can recall. Though as podcast alum […]
#2: “Stocks Can Underperform Bonds for a Long, Long Time” - Meb Faber Research - Stock Market and Investing Blog
If you asked the average investor to name the most iron rule of investing, they’d likely say: “Stocks outperform bonds.” And yes, over the long haul, that’s been true. Since 1900 US stocks have returned 9.9% and 10-year US government bonds about 4.4%, a mile-wide gap. But the key question most folks never ask is… […]
Chasing Buffett: Can You Get Berkshire Returns Without the Oracle? - Meb Faber Research - Stock Market and Investing Blog
Some of you may have seen that I built a customGPT trained on all my blogs, papers, books, and podcasts. You can even go talk to it (me?) here: MEB AI Ask it a few questions, does it sound like me? Anyways, we asked it to help write the below piece…not bad! Chasing Buffett: Can […]
20 Things You May Not Know About Markets (or That Might Surprise You). #1 - Normal Stock Market Returns are Extreme - Meb Faber Research - Stock Market and Investing Blog
We’re starting a new series here that will eventually be a short paper, but thought we’d drip these articles out every week over the course of the summer….enjoy! #1 – Normal stock market returns are extreme Most investors understand that stocks return about 10% per year over time. However, many investors may not appreciate the […]
Want to Make the BIG Money? - Meb Faber Research - Stock Market and Investing Blog
If you ask most people who makes the big money, they’ll likely say athletes like Ronaldo or celebrities like Taylor Swift. Some might respond CEOs of giant companies like Apple’s Tim Cook. Hedge fund managers make more than both combined by an order of magnitude.
ETF Performance vs. Fees & Assets Under Management (AUM) - Meb Faber Research - Stock Market and Investing Blog
We did a fun little study comparing the average Morningstar Star Rating vs. fees on the funds. We examined all ETF companies with at least five rated funds, resulting in approximately 50 companies. What we found would make sense: the most expensive group of funds tended to be the worst performers. But once you get […]
How Long Can US Stocks Underperform Foreign Stocks? - Meb Faber Research - Stock Market and Investing Blog
Imagine waiting almost FOUR DECADES for US stocks to outperform. Crazy right? That was 1952-1989. If you go back to the 1800s, foreign stocks outperformed the United States for 60 years at one point. What if the outperformance lasted year after year? Try to imagine five or six years in a row?! Could never happen, […]
Even The Best Stocks Have Nasty Drawdowns - Meb Faber Research - Stock Market and Investing Blog
If you held one of the best-performing mutual funds over the past 25 years, chances are it had a 60% drawdown. If you held one of the best-performing stocks over the past 40 years, chances are it had a 70% drawdown. Could you sit through it? Via Mauboussin
Searching for 100 Baggers... - Meb Faber Research - Stock Market and Investing Blog
Everyone always assumes it’s tech stocks…take a look at this list of 100+ baggers and their industry: Beverages, land royalties, shoes, farm supplies, car parts, kitchenware, copper mines, credit scores, kidney dialysis, waste disposal, etc… via Bespoke
T-Bills and Chill - Meb Faber Research - Stock Market and Investing Blog
Relative to T-bills, normal yields for US 10/30, and AGG should be up around 6%, corporate bonds 7%, and emerging and junk around 10%. What if that happens this year? (T-bill yields could also come down, or both, or neither of course…) Here’s our old white paper on T-Bills and Chill…sounds pretty good this year! […]
It's Dark... - Meb Faber Research - Stock Market and Investing Blog
Really fun podcast today…hanging with Mrs. Faber! Go pick up a copy of her new book! https://amzn.to/43uyLoC Links! Apple: https://podcasts.apple.com/us/podcast/jacqueline-faber-a-journey-into-dark-academia-573/id1128955736?i=1000698241116… Spotify: https://open.spotify.com/episode/5aSrneG7DQW71vIUdxqvbv… YouTube: https://youtu.be/VNFenVADrTM ShowNotes: https://themebfabershow.com/episodes/12k4TdxxbKm…
Sector Adjusted Stock Valuations - Meb Faber Research - Stock Market and Investing Blog
People love to point out that the US has higher stock valuations but a larger high growth tech sector…does that matter? Via Goldman: The entire100+ page report we profiled on The Idea Farm is excellent…a few more charts at the end from Norbert at Taunus…
Japan's Growth - Meb Faber Research - Stock Market and Investing Blog
Fun chart from Jeff Weniger “People are usually surprised when I show them how Japan has grown its dividends at a 6.9% annual clip over the last 20 years, outpacing the 6.7% growth pace of the S&P 500. Japan trades for 13.5x forward earnings, or a 37% discount to the S&P’s P/E of 21.3.”
Funds That Pay You To Invest - Meb Faber Research - Stock Market and Investing Blog
What about an investment that pays you to invest? That sounds like something you’d see advertised on Instagram, right? Nope “Thirty-four ETFs earned a higher securities-lending return than their annual fee in 2024.” ETFs That Pay You to Invest
New Book Launch! - Meb Faber Research - Stock Market and Investing Blog
Big news out of the Faber household…a new book drops today! Except this time, it’s not mine, and it’s much more fun to read! My wife’s debut novel is out today, and it would mean the world to me and her if you picked up a copy….let me know what you think! The Department by […]
No Juice - Meb Faber Research - Stock Market and Investing Blog
On the podcast with Research Affiliates’ Jim Masturzo, I said that the biggest head scratcher across the investing landscape for me is the fixed income space (the segment starts here). I really don’t get why people are investing in risky and volatile fixed income markets like corporate bonds and junk when they don’t provide much, […]
My Conversation with Bank of America's Savita Subramanian - Meb Faber Research - Stock Market and Investing Blog
Savita Subramanian came on the podcast last week and did not disappoint! Savita is the Head of US Equity Strategy and Quantitative Strategy at Bank of America and one of the most followed investment strategists on Wall Street. If you missed the episode, don’t worry—I’ve pulled out some highlights (and a couple of her epic […]
The #1 Stock in the World - Meb Faber Research - Stock Market and Investing Blog
Did you know the most profitable stock in the world isn’t located in the United States? (I didn’t). Below we feature two research pieces featured in The Idea Farm, our free weekly email going out to over 100,000 investors worldwide! First up, a 100+ page market outlook from Goldman Sachs. Here’s the top 10 companies […]
Top Investment Quotes - Meb Faber Research - Stock Market and Investing Blog
The 15 most popular quotes of the day from 2024! “More fiction has been written in Excel than in Word.” – @morganhousel “Buybacks are divisive. They divide people who understand finance from those who don’t.” – Ken French “Never, ever tell anyone about your problems, 90% of the people really don’t care. The other […]
Episode #535: KraneShares' Brendan Ahern on China's Economic Landscape: Is It Still Investable? - Meb Faber Research - Stock Market and Investing Blog
Guests: Brendan Ahern is the Chief Investment Officer at KraneShares, which provides investors access to China, Climate, and other uncorrelated strategies. He also produces China Last Night, a daily note recapping important news out of China. Recorded: 5/22/2024 | Run-Time: 52:09 Summary: In today’s episode, Brendan delves into the current state of China’s […]
What If You Owned No US Stocks? - Meb Faber Research - Stock Market and Investing Blog
“I view diversification not only as a survival strategy but as an aggressive strategy because the next windfall might come from a surprising place.” – Peter Bernstein What is the single most universally held belief in all of investing? Think about it for a minute. Our vote would be “Investors MUST own US stocks.” It […]
Podcast Update! - Meb Faber Research - Stock Market and Investing Blog
Excited news to share… After almost 550 episodes, the podcast has its own website! You may have noticed we stopped posting podcast episodes here on the blog. Going forward, all episode show notes will be on the new website. Be sure to subscribe on Apple, Spotify, or YouTube!