We often get questions from individual investors worried about my firm closing our ETFs. To which I respond “well we’ve only closed one ETF ever (with the unfortunate ticker FAIL, why didn’t any of you warn me on that one). The firms that close the most funds are actually the big shops!” This usually surprises […] The post #20: “The Big ETF Shops Shut Down The Most Funds” appeared first on Meb Faber Research - Stock Market and Investing Blog.| Meb Faber Research – Stock Market and Investing Blog
A lot of people don’t realize this, but you could own a mutual fund, have losses on that fund, and STILL have to pay major capital gains taxes…say what?! (Article from Russell.) Morningstar has an annual report that covers some particularly big distributions, and usually there are fund distributing 20, 40% or more! Here is […] The post #19: “You Might Be Paying Annual Cap Gains On Your Mutual Fund Even If You Don’t Sell And It’s Down On The Year” appeared first on Meb Faber Rese...| Meb Faber Research – Stock Market and Investing Blog
Most investors take an asset allocation approach to investing. They understand diversification will smooth their path vs. a stock-only benchmark like the S&P 500. But do they realize just how long they can underperform? If you ask most investors how long they can handle underperforming, they usually say just a few years. (Polls here, here, […] The post #18: “Your Asset Allocation Can Go A Long, Long Time Underperforming the S&P 500” appeared first on Meb Faber Research - Stock Market an...| Meb Faber Research – Stock Market and Investing Blog
US stocks have outperformed just about everything the past 125 years at about 10% per year. Astonishing. A global portfolio (including US stocks) would have underperformed by about one percentage point a year. Doesn’t sound like much but adds up! However, only investing in one country exposes the investor to specific risks. Historically, diversifying globally […] The post #17: “Global Stocks Have Better Risk-Adjusted Returns Than US Stocks” appeared first on Meb Faber Research - Stock...| Meb Faber Research – Stock Market and Investing Blog
The US stock market has never had a period of 20 years where stocks have lost money, even after inflation. However, for MOST stock markets, that is not the case. Some have gone 20, 40, 60, 80, years with no real returns. Think about that for a bit before you decide to go all in […] The post #16: “Stocks Can Go A Long, Long Time With No Returns” appeared first on Meb Faber Research - Stock Market and Investing Blog.| Meb Faber Research – Stock Market and Investing Blog
people love to complain about how bad things are, but let’s be clear they’ve been way worse Via HistoryinMemes Worst Year Ever: “2020 was a terrible year, but it’s still far from being the worst in recorded human history. Here are a few bad ones: 1349 was the peak of the Black Death, which killed […]| Meb Faber Research - Stock Market and Investing Blog
I view diversification not only as a survival strategy but as an aggressive strategy because the next windfall might come from a surprising place.” – Peter Bernstein| Meb Faber Research - Stock Market and Investing Blog
Utilities and the Nasdaq have similar performance over the past 40+ years… ¯\_(ツ)_/¯ The post #14: “Utilities and the Nasdaq Have the Same Return” appeared first on Meb Faber Research - Stock Market and Investing Blog.| Meb Faber Research – Stock Market and Investing Blog
Most of us like to think we’re independent, logical thinkers. Silly inputs like where, or when we’re born shouldn’t affect our investment process…right? Right? We’ve talked a lot about home country bias over the years, but it also turns out there is state bias and birth bias (not sure those are real phrases)… Instead of […] The post #13: “What Country (and What State) You’re Born in Influences Your Allocation” appeared first on Meb Faber Research - Stock Market and Inves...| Meb Faber Research – Stock Market and Investing Blog
Most investors LOVE to obsess over fees, as they should. But most investors also overlook a critical input to the total fee costs that could even result in a negative expense ratio, meaning, you get paid to own the fund! That sounds like something you’d see advertised on Instagram, right? Nope “Thirty-four ETFs earned a higher […] The post #12: You May Be Getting Paid To Invest appeared first on Meb Faber Research - Stock Market and Investing Blog.| Meb Faber Research – Stock Market and Investing Blog
I view diversification not only as a survival strategy but as an aggressive strategy because the next windfall might come from a surprising place.” – Peter Bernstein What is the single most universally held belief in all of investing? Think about it for a minute. Our vote would be “Investors MUST own US stocks.” It […] The post #11: You Don’t Have to Own US Stocks appeared first on Meb Faber Research - Stock Market and Investing Blog.| Meb Faber Research – Stock Market and Investing Blog
If you’re like most investors, you’re asking the wrong questions. I was chatting with a group of advisors about a decade ago in La Jolla and a question arose. I’ll paraphrase: “Meb, thanks for the talk. We get a steady stream of salespeople and consultants in here hawking their various asset allocation models. Frankly, it […]| Meb Faber Research - Stock Market and Investing Blog
Episode #324: Edward McQuarrie, Santa Clara University, “Sometimes Stocks Beat Bonds, Sometimes Bonds Beat Stocks” Guest: Edward F. McQuarrie is a Professor Emeritus in the Leavey School of Business at Santa Clara University. He received his Ph.D. in social psychology from the University of Cincinnati in 1985. Date Recorded: 6/2/2021 | Run-Time: 1:16:52 […]| Meb Faber Research - Stock Market and Investing Blog
In our last piece, we examined just how long US stocks can go underperforming US bonds. The answer was, a lot longer than most could handle.| Meb Faber Research - Stock Market and Investing Blog
In our last piece, we examined just how long US stocks can go underperforming US bonds. The answer was, a lot longer than most could handle. But what about a more comparable asset – stocks outside the US? US stocks have trounced foreign stocks for as long as anyone can recall. Though as podcast alum […]| Meb Faber Research - Stock Market and Investing Blog