Cambria’s Faber on the Flaw in Market-Cap Indexes

US value stocks have quietly regained momentum and remain deeply discounted relative to growth, a valuation backdrop that has historically supported strong forward performance. In this episode of Inside Active, host David Cohne, mutual fund and active-management analyst at Bloomberg Intelligence, and co-host Christopher Cain, BI’s US quantitative strategist, speak with Meb Faber, co-founder, chief executive officer and chief investment officer of Cambria Investment Management, and a portfolio manager of the Cambria Global Value ETF (GVAL). The discussion explores why GVAL was designed to address a shortcoming in market-cap weighting, why Faber’s process begins with country-level valuations, and how composite valuation metrics can help reduce model risk. They also examine the role of investor psychology in shaping market behavior and why historical market patterns remain a us

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