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.
Seth Klarman Tells His Investors: Central Banks Are Treating Investors Like “Foolish Children”
"Surreal doesn't even begin to describe this moment," Seth Klarman noted in his second-quarter letter to the Baupost Group investors. Commenting on the market developments over the past six months, the value investor stated that events, which would typically occur over an extended time frame, had been compressed into just a few months. He noted 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.
Episode Sponsor: Soothe – download and get $30 off first massage!
To listen to Episode #16 on iTunes, click here
To listen to Episode #16 on Stitcher, click here
To listen to Episode #16 on Pocket Casts, click here
To listen to Episode #16 on Google Play, click here
To stream Episode #16, click here
Comments or suggestions? Email us [email protected]
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