As Good As It Gets? | Meb Faber on U.S. Stock Valuations, Trend Following, and Endowment Allocations To Private Markets
Description
This episode is brought to you by CAIA.nxt. Learn more about their alternatives education courses for investment advisors and get 10% off with code MMTEN:
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In this episode of Monetary Matters, Jack welcomes Meb Faber, founder of Cambria Funds, to discuss the extreme valuations in the US stock market and where investors can still find value. Meb breaks down historical market cycles, comparing the current AI boom to the railroad bubbles of the past, and explains why "expensive uptrends" can persist longer than logic dictates.
The conversation shifts to the institutional world, where Meb challenges the status quo of major endowments like Harvard and CalPERS, arguing that complex private equity strategies can often be beaten by simple, liquid ETFs. Finally, Meb reveals a tax code loophole (Section 351) that allows investors to swap concentrated stock positions for diversified ETFs on a tax-deferred basis. Recorded on November 20, 2025.
Follow Meb Faber on Twitter https://x.com/MebFaber
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Pieces Discussed:
“Exceptional Expectations: U.S. vs. Non-U.S. Equities”: https://www.aqr.com/Insights/Research/White-Papers/Exceptional-Expectations-US-vs-Non-US-Equities
“LEARNING TO LOVE INVESTMENT BUBBLES: WHAT IF SIR ISAAC NEWTON HAD BEEN A
TRENDFOLLOWER?”: https://mebfaber.com/wp-content/uploads/2016/05/SSRN-id1923387.pdf
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