Meb Faber Research – Stock Market and Investing Blog

Great stuff as always from the O'Shaunessey crew illustrating a few key points I agree with (my summary points): 1. US stocks are more expensive than most global markets (largely agrees with our CAPE work)     2.  US dividend stocks, priced historically at a discount to the broad market , now trade at a premium. (see chart #2 from Janus / Empirical - it is...

I thought it would be interesting to visualize all of the countries and their 10 year PE ratios in one chart.   Enjoy!  

I posted a series of investing ideas earlier in the year, and it is good to see people are tackling them!  My friend Wes just launched TurnkeyStats in beta, which is a solid way to backtest allocation ideas.  An update on the five ideas at the end of the post. I wanted to add a sixth - A Webseries of thoughtful...

With news Shiller and Gundlach are teaming up on some domestic CAPE funds, we turn our attention to our global CAPE work.  From end of year 2012 values, you have performance from the following groups:  

I have come to post most of my links and what I'm reading over on Twitter these days, so if you're interested you can follow there at @MebFaber   a few good links recently:   Gundlach and Shiller teaming up on CAPE fund http://www.investmentnews.com/article/20130815/FREE/130819947 … All weather except when it's raining on bonds. http://www.bloomberg.com/news/2013-08-14/dalio-patched-all-weather-s-rate-risk-as-u-s-bonds-fell.html … speaking of 13F week - over ten manager clones top 10 holdings...

It seems like the financial news consists largely of news items on what these four managers are up to. Who is buying Herbalife, what are they doing with Apple, what are they talking about on Twitter. However, I have yet to hear, EVER, either of the following questions which underly the entire point of talking about them. 1.  Does it make...

I've chatted with the Sports Insights crew for a while on constructing quant ideas in the sports analytics world.  They consistently do a good job, and one of their favorite concepts is betting against the public.  (Check out this 2011 post of mine.)  They also looked at vegas prop odds for various players to win most yards in each category...

Great post from NYU prof Damodaran on country multiples.  (HT: Marcus) While we only did 40 or so countries, he takes it all the way to Kazakhstan and Gabon (which only has one company).  It looks like he did it the correct way (what he calls aggregate what we call harmonic averages). Good stuff!

Third Point has been one of the best hedge funds in the world for the past decade or so.  The fund has returned about 17% annually since 2000, an impressive feat considering the paltry 2% returns of the S&P 500. Interestingly enough, investing alongside Third Point through 13F filings does a decent job, but doesn't capture all of Loeb's alpha....

People seemed to really like our last post on asset allocation strategies.  Below is a sample allocation from an oft requested model, the 7/Twelve portfolio.