Ep. 475: Meb Faber: The time is now… Start looking for alternatives

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Welcome back to another episode of Wall Street Unplugged!

The 2017 Consumer Electronics Show is finally just two weeks away.

If you are not familiar, this is an event that sets the tone for the entire tech-sector… An event where the world’s most innovative technology meets the consumer… And an event that investors cannot miss.

Before today’s guest signs on, I’ll be giving listeners an exclusive sneak-peek.

The announcements of these “exponential growth technologies” create once-in-a-lifetime opportunities. Which means, as investors, we must catch on to these trends early – before they disrupt the markets.

Then, for today’s main segment, I’m joined by longtime friend, Meb Faber [12:30] – best selling author, entrepreneur, and Chief Investment Officer/ Portfolio Manager at Cambria Investment Management.

The dollar is surging, the market continues to hit all-time highs, and we’ve seen one of the longest lasting bull markets in decades… So to start off the interview, Meb explains how a US downtrend is on the horizon.

Meb is a numbers guy. A research junkie. His evaluation methodologies are far from the norm… He uses what he calls the Shiller CAPE ratio.

Not only does he claim future expected returns are going to be lowered, he has the numbers to prove it. The markets are getting more expensive. And as a result, the chances of finding “cheap uptrends” are getting slimmer.

Meb believes investors need to take a step back… and must start looking for alternatives.

“Every investor should have at least half of their stocks outside of the US” he says.

Using the CAPE ratio, Meb has managed to find a couple markets that have the “cheap upside” investors are looking for.

Tune in to hear what they are…

Then, to sum up the episode, Meb gives listeners his 3 steps to the ideal, global market portfolio.

Links & Resources:

  • Learn more about the 2017 Consumer Electronics Show (CES) here
    • No tickets? …No problem. I’ll be posting show updates on my Twitter
  • Stay connected with Meb Faber and read his blog – here
  • Read: Meb’s latest bookGlobal Asset Allocation
  • Read: Meb’s blog post on the ideal, global portfolio – The Trinity Portfolio

Stocks Mentioned:

  • Amazon.com, Inc. (AMZN)
  • Fitbit, Inc. (FIT)
  • Cameco Corporation (CCJ)
  • McDonald’s Corporation (MCD)
  • The Procter & Gamble Company (PG)

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