The party always ends \u2014 and Meb Faber, one of the most data-driven voices in global investing, says the evidence is now undeniable that the decade-long US equity dominance is giving way to something very different.<\/p>\n
SUMMARY<\/strong><\/p>\n On this episode of Raise Your Average<\/em>, hosts Pierre Daillie and Mike Philbrick sit down with Meb Faber \u2014 co-founder and CIO of Cambria Investment Management, prolific researcher, and host of The Meb Faber Show<\/em> \u2014 for a wide-ranging conversation about what investors and financial advisors must rethink as the rules of the game quietly change beneath their feet.<\/p>\n With US equity concentration at historic extremes, inflation proving stickier than expected, and geopolitical disorder accelerating structural shifts already underway, Meb makes the case that the era of a US-heavy 60\/40 portfolio solving everything is in the rearview mirror. He challenges the deeply ingrained recency bias that has left most North American investors dangerously underweight in international equities and real assets \u2014 and explains what the data actually says about where opportunity is emerging.<\/p>\n The conversation moves from big-picture regime change into highly practical territory: how to build a portfolio that survives behaviorally, not just mathematically; how to think about concentrated, low-basis positions and the tax traps hiding inside the gains of the last 15 years; and why “tax alpha” may be the most overlooked and underutilized edge in wealth management today. Meb also shares how he’s deploying AI in his own practice \u2014 including a custom-trained GPT built on his entire body of work \u2014 and what advisors should be borrowing from that playbook right now.<\/p>\n \u23f1\ufe0f CHAPTERS<\/strong><\/p>\n 00:00 \u2014 Welcome & banter: tacos, spicy food, and market chaos08:00 \u2014 Meb joins; framing the moment: Venezuela to tariffs to Iran13:00 \u2014 A regime change? Dissecting the end of the 40-year bull run15:00 \u2014 The bull market in diversification: foreign markets doing 30%+ while the S&P stalls17:00 \u2014 What advisors are underweight: ex-US equities and real assets20:00 \u2014 How to explain a generational shift to clients without jargon24:00 \u2014 Global diversification: the evidence from 15 famous portfolios27:00 \u2014 The 20% annual spread problem and why tracking error breaks investors30:00 \u2014 Portfolio vulnerabilities in the cap-weighted US-dominant model31:00 \u2014 Opportunities: global value, small cap, fixed income niches, real assets35:00 \u2014 The “fat” portfolio: three ingredients every investor needs40:00 \u2014 Utilities, dividends, and the tortoise-vs-hare reversal44:00 \u2014 Behavioral investing: why systematic strategies exist48:00 \u2014 The concentrated position trap: identity, emotion, and the sell decision51:00 \u2014 Systematic rebalancing: lessons from Cambria’s early days53:00 \u2014 “The easy money’s been made” \u2014 market phrases Meb despises55:00 \u2014 Deep value and what it takes to be a missionary, not a mercenary58:00 \u2014 The best active managers and why they always close the door at the top1:00:00 \u2014 When the penthouse becomes the outhouse1:04:00 \u2014 The Groucho Marx rule: would you buy what you already own?1:10:00 \u2014 Drawdown, pain tolerance, and the real test of a portfolio1:17:00 \u2014 Concentrated low-basis positions: the tax trap hiding in plain sight1:19:00 \u2014 100 years of stock data: what the best-performing stocks actually returned1:22:00 \u2014 Tax strategies: 351 exchanges, direct indexing, QSBS, and box spreads1:27:00 \u2014 AI in practice: Meb’s custom ChatGPT and how advisors should use AI now1:30:00 \u2014 Behavioral AI: what happens when the bot knows you better than you do1:32:00 \u2014 Closing thoughts: raising your average in a noisier, more complex world<\/p><\/p>\n #MebFaber #CambriaInvestments #GlobalDiversification #PortfolioConstruction #ValueInvesting #TrendFollowing #6040Portfolio #TaxAlpha #ConcentratedPositions #DirectIndexing #RealAssets #InternationalStocks #RegimeChange #FinancialAdvisor #WealthManagement #InvestingStrategy #RaiseYourAverage #AIInvesting #BehavioralFinance #LongTermInvesting #ETFinvesting #SmartBeta #FactorInvesting #MarketOutlook2026 #AdvisorAnalyst<\/p>\n","protected":false},"excerpt":{"rendered":" The party always ends \u2014 and Meb Faber, one of the most data-driven voices in global investing, says the evidence is now undeniable that the decade-long US equity dominance is giving way to something very different.<\/p>\n SUMMARY<\/strong><\/p>\n On this episode of Raise Your Average<\/em>, hosts Pierre Daillie and Mike Philbrick sit down with Meb Faber \u2014 co-founder and CIO of Cambria Investment Management, prolific researcher, and host of The Meb Faber Show<\/em> \u2014 for a wide-ranging conversation about what investors and financial advisors must rethink as the rules of the game quietly change beneath their feet.<\/p>\n With US equity concentration at historic extremes, inflation proving stickier than expected, and geopolitical disorder accelerating structural shifts already underway, Meb makes the case that the era of a US-heavy 60\/40 portfolio solving everything is in the rearview mirror. He challenges the deeply ingrained recency bias that has left most North American investors dangerously underweight in international equities and real assets \u2014 and explains what the data actually says about where opportunity is emerging.<\/p>\n The conversation moves from big-picture regime change into highly practical territory: how to build a portfolio that survives behaviorally, not just mathematically; how to think about concentrated, low-basis positions and the tax traps hiding inside the gains of the last 15 years; and why “tax alpha” may be the most overlooked and underutilized edge in wealth management today. Meb also shares how he’s deploying AI in his own practice \u2014 including a custom-trained GPT built on his entire body of work \u2014 and what advisors should be borrowing from that playbook right now.<\/p>\n \u23f1\ufe0f CHAPTERS<\/strong><\/p>\n 00:00 \u2014 Welcome & banter: tacos, spicy food, and market chaosnn08:00 \u2014 Meb joins; framing the moment: Venezuela to tariffs to Irannn13:00 \u2014 A regime change? Dissecting the end of the 40-year bull runnn15:00 \u2014 The bull market in diversification: foreign markets doing 30%+ while the S&P stallsnn17:00 \u2014 What advisors are underweight: ex-US equities and real assetsnn20:00 \u2014 How to explain a generational shift to clients without jargonnn24:00 \u2014 Global diversification: the evidence from 15 famous portfoliosnn27:00 \u2014 The 20% annual spread problem and why tracking error breaks investorsnn30:00 \u2014 Portfolio vulnerabilities in the cap-weighted US-dominant modelnn31:00 \u2014 Opportunities: global value, small cap, fixed income niches, real assetsnn35:00 \u2014 The “fat” portfolio: three ingredients every investor needsnn40:00 \u2014 Utilities, dividends, and the tortoise-vs-hare reversalnn44:00 \u2014 Behavioral investing: why systematic strategies existnn48:00 \u2014 The concentrated position trap: identity, emotion, and the sell decisionnn51:00 \u2014 Systematic rebalancing: lessons from Cambria’s early daysnn53:00 \u2014 “The easy money’s been made” \u2014 market phrases Meb despisesnn55:00 \u2014 Deep value and what it takes to be a missionary, not a mercenarynn58:00 \u2014 The best active managers and why they always close the door at the topnn1:00:00 \u2014 When the penthouse becomes the outhousenn1:04:00 \u2014 The Groucho Marx rule: would you buy what you already own?nn1:10:00 \u2014 Drawdown, pain tolerance, and the real test of a portfolionn1:17:00 \u2014 Concentrated low-basis positions: the tax trap hiding in plain sightnn1:19:00 \u2014 100 years of stock data: what the best-performing stocks actually returnednn1:22:00 \u2014 Tax strategies: 351 exchanges, direct indexing, QSBS, and box spreadsnn1:27:00 \u2014 AI in practice: Meb’s custom ChatGPT and how advisors should use AI nownn1:30:00 \u2014 Behavioral AI: what happens when the bot knows you better than you donn1:32:00 \u2014 Closing thoughts: raising your average in a noisier, more complex world<\/p>n<\/p>\n #MebFaber #CambriaInvestments #GlobalDiversification #PortfolioConstruction #ValueInvesting #TrendFollowing #6040Portfolio #TaxAlpha #ConcentratedPositions #DirectIndexing #RealAssets #InternationalStocks #RegimeChange #FinancialAdvisor #WealthManagement #InvestingStrategy #RaiseYourAverage #AIInvesting #BehavioralFinance #LongTermInvesting #ETFinvesting #SmartBeta #FactorInvesting #MarketOutlook2026 #AdvisorAnalyst<\/p>\n","protected":false},"author":1,"featured_media":1393,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"categories":[18],"tags":[],"_links":{"self":[{"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/episode\/1392"}],"collection":[{"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/episode"}],"about":[{"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/types\/episode"}],"author":[{"embeddable":true,"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/comments?post=1392"}],"version-history":[{"count":0,"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/episode\/1392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/media\/1393"}],"wp:attachment":[{"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/media?parent=1392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/categories?post=1392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisoranalyst.com\/podcast\/wp-json\/wp\/v2\/tags?post=1392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}