For decades, investors have been told that diversifying is a good thing. You should hold a basket of stocks across different sectors and geographies, plus bonds, maybe some commodities or real estate, and so on. But, it turns out that you probably would have done better if you just bought large-cap US stocks in the form of an S&P 500 ETF like SPY. So why haven't diversified investments performed better? In this episode, we speak with Meb Faber, CIO of Cambria Investment Management, the host of the Meb Faber show, and the author of one of the most-downloaded research papers on SSRN. He says the last 15 years have "arguably been the worst period ever for an asset allocation portfolio. 

Read more:
Great ‘Bear Market’ in Diversification Haunts Wall Street Pros
The Fate of the World’s Largest ETF Is Tied to 11 Random Millennials

Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots

For decades, investors have been told that diversifying is a good thing. You should hold a basket of stocks across different sectors and geographies, plus bonds, maybe some commodities or real estate, and so on. But, it turns out that you probably would have done better if you just bought large-cap US stocks in the form of an S&amp;P 500 ETF like SPY. So why haven't diversified investments performed better? In this episode, we speak with Meb Faber, CIO of Cambria Investment Management, the host of the Meb Faber show, and the author of one of the most-downloaded research papers on SSRN. He says the last 15 years have "arguably been the worst period ever for an asset allocation portfolio. 
Read more: <a href="https://bloom.bg/4dWFNnI">Great ‘Bear Market’ in Diversification Haunts Wall Street Pros</a> <a href="https://bloom.bg/4hbFt7y">The Fate of the World’s Largest ETF Is Tied to 11 Random Millennials</a> Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at <a href="https://www.bloomberg.com/subscriptions/oddlots?in_source=oddlotspodcast" data-destination="https://www.bloomberg.com/subscriptions/oddlots?in_source=oddlotspodcast">bloomberg.com/subscriptions/oddlots</a>

Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets and economics. Join the conversation every Monday and Thursday.

Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets and economics. Join the conversation every Monday and Thursday.

Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Tuesday and Thursday for interviews with the most interesting minds in finance, economics and markets.

Odd Lots

On Bloomberg’s Odd Lots podcast Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets, and economics. Join the conversation every Monday and Thursday. 

On Bloomberg’s Odd Lots podcast Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets, and economics. Join the conversation every Monday and Thursday.

Meb Faber on the Big Bear Market in Diversification and Tactical Allocation

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/3c5963c4-845f-4016-826d-b20c01511e02/transcript

Advertisement