Meb Faber on investing in China

China's stock market reminds me of Japan.   It's gone nowhere for 30 years and it's in single digit P/E ratios.  We owned very little China for a long time only because the stocks, on average, were very expensive, they weren't doing buybacks, they weren't paying dividends.  It's all speculative type of securities.  We've now slowly started adding China...

~ Meb Faber, "Ignore the Mega-Bubble and Prioritize Shareholder Yield," Stansberry Investor Hour, 44:35 mark, April 8, 2024

Dylan Grice on the end of the duration bull market

It's been a golden age for duration.  In the bond market, interest rates have gone from 20% to zero in effect over a 40 year period.  So the total return from government bonds over the last 40 years has been higher than the total return to equities in the previous 100 years on an annualized basis...  The most interesting, maybe the most practical dimension to this is that this has happened over four decades.  In other words, that's a full career in finance.  And so you have had, I think, this phenomenal tailwind and to multiple asset classes.  Obviously corporate bonds and credit markets have had a huge tailwind from the bull market in government bonds, but so have other duration assets.  So real duration assets like equities, private equity or venture equity, arguably real estate.  All of these things have had this enormous tailwind...  So this end of a duration bull market, if that bull market turned into a bear market than pretty much all conventional mainstream portfolios are going to be tossed.

~ Dylan Grice, interview, The Meb Faber Show, 7:35 mark, April 11, 2022

Meb Faber on value outperforming growth: "It could last the better part of the next decade"

Value stocks haven’t done great for the past decade, but we’ve seen a massive rebound over the past year, and there has been a regime change.  Over the past six months, all the big momentum funds have been rotating into value stocks and away from growth stocks.  In historical context, value stocks have barely budged off the bottom, so there’s quite a way to go.  It could last the better part of the next decade.

~ Meb Faber, "Designing a Portfolio With Crypto, Cannabis, and Value in Mind," Barron's, July 3, 2021