The Meb Faber Show - Better Investing Radio Show: Meb on Markets at Extremes, Anything BUT Market Cap, and Embracing Volatility | #616
19 snips
Feb 3, 2026 Colby Donovan, radio co-host and interviewer who steers market conversations. He presses Meb on market-cap limits and alternatives. They cover CAPE extremes, equal-weight and global shifts. Conversation jumps to the quiet comeback of gold, commodities, and real assets. They close by probing trend-following and portfolio substitutes without diving into technical takeaways.
AI Snips
Chapters
Books
Transcript
Episode notes
Market-Cap Shares Shift Dramatically Over Time
- Country market-cap share can change drastically over decades, as Japan and the US demonstrate.
- Owner participation and cultural risk-taking help explain why some countries' market share compounds higher.
US Valuations Stand Out Versus The World
- US valuations (CAPE, dividend yields) sit well above most other countries, creating potential reversion opportunities.
- Foreign markets trade at much lower multiples and higher yields, making global diversification attractive.
Mark Faber's Heavy Gold Allocation
- Mark Faber held 25% of his allocation in gold and it was the only portfolio with positive returns each decade in their simulations.
- That allocation emphasized how unpopular but stabilizing gold can be across cycles.
