Would You Stick To Short-Term Bonds Or Hold Cash by Meb Faber
Guest: Episode #16 has no guest, but is co-hosted by Meb’s co-worker, Jeff Remsburg.
Peter Lynch was one of the best growth investors of all time. As the Magellan Fund manager at Fidelity Investments between 1977 and 1990, he averaged a 29.2% annual return. Q1 2021 hedge fund letters, conferences and more The fund manager's investment strategy was straightforward. He wanted to find growth companies and sit on them Read More
Topics: Episode #16 is another “Listener Q&A” episode. With Jeff asking follow-ups, here are a few of the questions Meb tackles:
- Given low bond yields, what asset would you suggest holding in a trend following strategy while in “cash”? Would you stick to short-term bonds, diversify with several bond funds, or actually hold cash?
- I struggle with a way to screen for quality. I just listened to your podcast with Pete Mladina and he alluded to profitability as a factor. Have you done any work here?
- Do you believe that the development of smart beta (momentum, value, low vol…) will kill the edge of these factors?
- It’s difficult to distinguish signal from noise when evaluating different indicators, such as forward PE versus TTM PE. What suggestions do you have for evaluating the myriad indicators out there?
- I just came into a lump sum of money. Is there any research on the best way to invest it into a pricey market? All at once? Average in? Buy on the pull-backs?
- Should your primary residence count toward your asset allocation and portfolio?
- What do you mean by rebalancing taxable accounts by cash flows?
There are many more questions that touch upon topics including currency exposure, tweaks to shareholder yield, and the effects of hefty fees. All this and more in Episode 16.
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Links from the Episode:
- Morningstar Fund Screener
- Attain Capital
- “A Quant Approach to TAA” – Faber
- Timing Updates and FAQ
- “Finding Yield in a 2% World” – Faber
- “Profits for the Long Run: Affirming the Case for Quality” – GMO
- Piotroski F-Score
- “Where are the Cheap High Quality Value Stocks?” and “How to Identify High Quality Stocks” – Alpha Architects
- “Quality Minus Junk: Factors, Monthly” – AQR
- “Buffett’s Alpha” – AQR
- What Works on Wall Street – O’Shaughnessy
- “To Win with “Smart Beta“ Ask If the Price Is Right” – Research Affiliates
- Home Price Indices
- The Real Value of a Home – Zweig
- Bankrate Survey
- Median House Price to Median Income chart
- Stocks You Shouldn’t Own – OSAM
- Home Bias – Schwab
- “How Much are those Dividends Costing You?” – Faber