In investing, a black swan event is something almost nobody sees coming—and to make a bet on the outcome of that unforeseen event has always been expensive and complicated. Inflation upending the market over the past year, and the Federal Reserve’s pivot to higher interest rates, has sparked interest among investors looking to hedge this particular type of “tail risk.”

On this episode, Eric and Joel speak with Meb Faber, founder of Cambria and host of podcast “The Meb Faber Show.” Faber has designed two exchange-traded funds in this space, $TAIL and $FAIL. They also speak with reporter Denitsa Tsekova, as the group discusses how tail-risk ETFs work, where they fit in a portfolio and whether you even need them. 

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