In this Mebisode, Meb reads his post from February 2022 titled “Red Light," which discussed the risk of an expensive market entering a downtrend. As he said in the piece, "historically speaking, markets have performed poorly when in a downtrend, characterized by higher volatility and drawdowns." 
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Today’s episode is sponsored by The Idea Farm. The Idea Farm gives you access to over $100,000 worth of investing research, the kind usually read by only the world’s largest institutions, funds, and money managers. Subscribe for free here.
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Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
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Mebisode – Red Light | #418

Ready to grow your wealth through smarter investing decisions? With The Meb Faber Show, bestselling author, entrepreneur, and investment fund manager, Meb Faber, brings you insights on today’s markets and the art of investing.

Featuring some of the top investment professionals in the world as his guests, Meb will help you interpret global equity, bond, and commodity markets just like the pros. Whether it’s smart beta, trend following, value investing, or any other timely market topic, each week you’ll hear real market wisdom from the smartest minds in investing today. Better investing starts here.

For more information on Meb, please visit MebFaber.com. For more on Cambria Investment Management, visit CambriaInvestments.com.

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Today’s guest is Brendan Ahern, 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. 
In today’s episode, Brendan delves into the current state of China's stock market and economy, exploring the impact of the property crisis, upcoming U.S. election and the state of the consumer. Our discussion addresses key questions on whether China remains a viable destination for investors, considering recent regulatory changes, economic policies, and global market dynamics. 
(1:02) Introducing our guest, Brendan Ahern
(5:53) The state of China's economy
(14:18) Analysis of China's geopolitical concerns and international partnerships
(20:01) The narrative around China post Russia-Ukraine
(22:03) Deep dive into KWEB
(29:44) Implications of the US election
(32:40) Discussion on currency hedging
(33:52) Other KraneShares' funds
(41:44) Will TikTok be banned
(43:52) Brendan's most memorable investment
(46:18) Future plans for KraneShares
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Follow Meb on Twitter, LinkedIn and YouTube
For detailed show notes, click here
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
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Sponsor: 10 East is a membership-based investment firm founded by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner, focused on providing targeted exposure to private markets. Members invest at their discretion in single-investment and niche fund vehicles across private credit, real estate, private equity, and venture capital.
Follow The Idea Farm: Twitter | LinkedIn | Instagram | TikTok
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Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
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Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! 
Learn more about your ad choices. Visit megaphone.fm/adchoices

KraneShares' Brendan Ahern: Is China Investable? | #535

Today’s guest is Michael Melissinos, founder of Melissinos Trading, an investment firm that employs a systematic trend-following approach.
In today’s episode, Mike shares his journey into trend following and his approach to trading. He emphasizes the importance of removing biases and opinions when observing trends and executing trades. We get into the nuances of trend following, sticking to a trading system, and much more.

(0:00) Introduction of guest Mike Melissinos and his journey into trend following

(6:08) Jumping into trend following

(10:07) Implementation and execution of trend following strategies, with emphasis on risk management

(14:19) Deciding what markets to trade

(16:33) The pitfalls of overriding your system

(21:24) Questioning assumptions and the benefits of sticking to a system

(28:40) Trading during the 2020 COVID crash and the subsequent inflation wave

(30:07) The unexpected downfall of the 60/40 in recent years

(33:11) Long term versus short term trading systems

(36:06) Mike's most memorable investment


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Follow Meb on Twitter, LinkedIn and YouTube
For detailed show notes, click here
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
-----
Sponsor: 10 East is a membership-based investment firm founded by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner, focused on providing targeted exposure to private markets. Members invest at their discretion in single-investment and niche fund vehicles across private credit, real estate, private equity, and venture capital.
Follow The Idea Farm: Twitter | LinkedIn | Instagram | TikTok
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Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
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Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! 
Learn more about your ad choices. Visit megaphone.fm/adchoices

Michael Melissinos - Mastering the Art of Trend-Following | #534

Today’s guests are Eric Crittenden, CIO of Standpoint Asset Management, and Jason Buck, CIO of Mutiny Funds.
In today’s episode, we talk about the sentiment around trend-following today. We discuss optimal diversifiers for trend-following, how the Herschel Walker trade relates to portfolio construction, and if investors are as diversified as they think they are.


(1:01) - Welcome back to our guests, Eric and Jason; Episode #389: Eric Crittenden; Episode #440: Jason Buck


(2:02) - Investor interest in trend following

(6:00) - Herschel Walker Syndrome


(15:55) - Building a portfolio away from the traditional 60/40

(18:08) - Rob Lintner Revisited


(29:02) - Interest overseas 

(41:30) - Paul Mulvaney’s back-to-back 40% months

(51:19) - Show recommendations

(56:22) - What Jason & Eric are hearing from investors today

(1:03:22) - Love for ETFs

(1:10:12) - Pairing trend following with factor investing

Learn more about Eric and Jason: Standpoint; Mutiny Fund



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Follow Meb on Twitter, LinkedIn and YouTube
For detailed show notes, click here
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
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Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Visit YCharts to start your free trial and be sure to mention "Meb" for 20% off your subscription (new clients only). 
Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok
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Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
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Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! 
Learn more about your ad choices. Visit megaphone.fm/adchoices

Eric Crittenden & Jason Buck Explain Why Best Investors Follow the Trends | #533

Today’s guest is Hendrik Bessembinder, a professor at Arizona State University.
In today’s episode, Meb and Hank discuss Hank's research on long-term stock returns and wealth generation. They explore the concept of power laws in the stock market, where a small percentage of stocks generate significant returns, while the majority underperform. They also discuss the implications of Hank's findings for investors, including the importance of diversification and the challenges of holding onto big winners.

(1:06) - Welcome to our guest, Hendrik Bessembinder

(1:27) - Do Stocks Outperform Treasury Bills?


(6:16) - Power laws drive stock market returns

(13:52) - The importance of holding on to winners in your portfolio

(15:22) - Shared traits among the best stocks

(23:10) - Takeaways from his global studies

(28:21) - Mutual Fund Performance and Long Horizons


(31:34) - Other topics Hank is interested in researching

(37:52) - Hendrik’s most memorable investment

Learn more about Hendrik: SSRN; Lessons from Bessembinder


-----
Follow Meb on Twitter, LinkedIn and YouTube
For detailed show notes, click here
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
-----
Sponsor: 10 East is a membership-based investment firm founded by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner, focused on providing targeted exposure to private markets. Members invest at their discretion in single-investment and niche fund vehicles across private credit, real estate, private equity, and venture capital.
Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok
-----
Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
-----
Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
-----
Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! 
Learn more about your ad choices. Visit megaphone.fm/adchoices

Hendrik Bessembinder - Do Stocks Outperform T-Bills? | #532

Today’s guest is Catherine LeGraw, a member of GMO’s Asset Allocation Team.
In today’s episode, Catherine explains why this is “the best relative asset allocation opportunity we’ve seen in 35 years," and “we are building portfolios with some of the highest forecasted relative and absolute returns we’ve ever seen." She explains where she sees opportunity around the world today, why she’s excited about deep value and quality, and how she’s thinking about the Magnificent 7.

(1:34) - Welcome to our guest, Catherine LeGraw

(1:45) - Why Catherine is so excited about the opportunity set today (Record Highs…But We’re Still Excited)


(8:04) - The Magnificent 7 (Magnificently Concentrated)


(14:39) - The opportunity in deep value

(17:10) - Opportunities in foreign stocks

(20:38) - GMO 7-Year Asset Class Forecast (Feb. 29, 2024)


(23:46) - Currency implications

(24:56) - The current state of bonds

(30:46) - Other interesting assets

(34:35) - Jump in the Deep End / GMO


(34:59) - Catherine’s most controversial opinion

(37:04) - Catherine’s most memorable investment

(38:41) - What in Tarnation



-----
Follow Meb on Twitter, LinkedIn and YouTube
For detailed show notes, click here
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
-----
Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Visit YCharts to start your free trial and be sure to mention "Meb" for 20% off your subscription (new clients only). View their Economic Update Visual Deck. 
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Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok
-----
Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
-----
Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
-----
Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! 
Learn more about your ad choices. Visit megaphone.fm/adchoices

Mebisode – Red Light | #418

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