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

Bullish:

• $QQQ - Investing in QQQ or big tech stocks would have been a more profitable strategy than diversification.

  • “I should have just bought QQQ or, you know, the big tech stocks”

    Joe·1:04

  • “You certainly would have made a lot more money if you just, I don't know, bought Apple or something.”

    Tracy·3:04
• $EM - Emerging markets, particularly in the tech sector, present value opportunities.

  • “Our emerging market fund, tech is the largest sector allocation. Which is surprising to many people because it's a value strategy.”

    Meb·25:03
• $GOLD - Gold is reaching all-time highs but is underappreciated by the market, suggesting potential for continued strength.

  • “Look around the world today, gold all time highs. Nobody's talking about it, at least at this conference that I'm chatting with.”

    Meb·44:02

Bearish:

• $DIVERS - Diversification, especially international diversification, has underperformed compared to concentrated investments in US large caps.

  • “You really should have just bought US big caps.”

    Joe·2:05

  • “And it turns out that was a bad idea.”

    Tracy·2:05