Meb Faber: Starved for Yield? Time to Go Global
Run-Time: 30:46
Topics: Episode #8 marks Meb’s first “listener feedback” episode. We’ve received numerous bond-related questions from listeners, but they all tend to reduce to something along the lines of: “Bonds are hovering around historically low yields. Where do they fit in a diversified portfolio today?” Meb tackles the question, discussing Treasuries first, then expanding to global sovereign bonds – which, by the way, is the largest asset class in the world. In fact, a market cap weighting would suggest you have about one-third of your portfolio in global bonds. Instead, the average U.S. investor has around 0%. This leads to a discussion about using a value screen to help identify attractive global sovereign debt opportunities. Turns out you could be invested in a basket generating about 7% right now. Of course, you’d be investing in countries like Brazil, Russia, India, Turkey, Mexico… Could you do that? If you’re a yield-starved investor, it might be time to consider the question more seriously as U.S. bond yields may not climb to meaningful levels for quite a while. So as to U.S. bonds, will yields keep dropping? Or is it time to get out? Find out Meb’s thoughts in Episode #8.
inks from the Episode:
- JP Morgan Guide to the Markets
- List of sovereign bond yields
- “Finding Yield in a 2% World” – Meb Faber
- Worst Hyperinflations in History – Business Insider
- Reminiscences of a Stock Operator – Edwin Lefevre
- Bond drawdowns – Meb Faber
- My portfolio for 2016 – Meb Faber
- “When bonds go to 0%” – Meb Faber
- “Dissecting Investment Strategies in the Cross Section and Time Series” – Baz et all
Running Segment: “Things I find beautiful, useful or downright magical”:
- Uncrate – Jeff
- Takao Inoue Dandelionand here – Meb
Transcript and more here – audio below