Mebane Faber: "Global Value: How to Spot Bubbles, Avoid Market Crashes, and Earn Big Returns"



Investment bubbles and speculative manias have existed for as long as humans have been involved in markets. Is it possible for investors to identify emerging bubbles and then profit from their inflation? Likewise, can investors avoid the bursting of these bubbles, and the extreme volatility and losses found in their aftermath to survive to invest another day? Over 70 years ago, Benjamin Graham and David Dodd proposed valuing stocks with earnings smoothed across multiple years. Robert Shiller later popularized this method with his version of the cyclically adjusted price-to-earnings (CAPE) ratio in the late 1990s and correctly issued a timely warning of poor stock returns to follow in the coming years. We apply this valuation metric across more than 40 foreign markets and find it both practical and useful. Indeed, we witness even greater examples of bubbles and busts abroad than in the United States. We then create a trading system to build global stock portfolios, and find significant outperformance by selecting markets based on relative and absolute valuation. Meb will also speak about 13-f research, and "hacking the hedge funds". Mr. Faber is a co-founder and the Chief Investment Officer of Cambria Investment Management. Faber is the manager of Cambria's ETFs, separate accounts and private investment funds for accredited investors. Mr. Faber has authored numerous white papers and three books: Shareholder Yield, The Ivy Portfolio, and Global Value. He is a frequent speaker and writer on investment strategies and has been featured in Barron's, The New York Times, and The New Yorker. Mr. Faber graduated from the University of Virginia with a double major in Engineering Science and Biology.

Comments

  1. this is a whole regurgitation of Robert Schillers Yale lecture
  2. thank you for a brilliant talkMeb. I heard about you from TIP the investor podcast. the only thing or part we unable predict is a human behavior in my humble opinion.
  3. Where I live rents are ridiculously high and wages are low .($800 a month for a studio apt. to me is way to high...)
  4. no of flaws in his argument. this is the generic argument that value clowns make. Richard psonzi[?] recommended citigroup in 2008 just before it blew up in sept 2008.
  5. Wow, Thumbs Up, Way Up! 
  6. This is pretty incredible. Macroeconomics explained quickly and understandably. Not much good to a poor person but when I'm not so poor this information seems good to remember. Is this a good intro for a beginner? "A basket of cheap things returns money" sounds reasonable enough. 


Additional Information:

Visibility: 34482

Duration: 59m 40s

Rating: 269