The Meb Faber Show · Friday, August 7, 2026
Meb Faber highlights the risks associated with the decade-long outperformance of US large-cap stocks, including concentration and valuation risk. He notes that while diversification has often been viewed as a less exciting necessity, the changing market landscape suggests it could be a source of significant returns. The strategy of the Cambria Global Value ETF (GVAL) is presented as a way to capitalize on this potential shift by investing in undervalued global markets.
“Because after a decade of strong returns for US large cap stocks, it's been easy to think that that's the whole playbook. And if you diversified it, it's like eating your vegetables. You know, you should eat them, but you're not exactly excited about it.”
“But the outperformance of US stocks presents risks that can lurk underneath the surface. Risks people often don't recognize until they show up. Concentration risk, valuation risk, and the risk that the next decade might not look like the last.”
“I view diversification not only as a survival strategy, but as an aggressive strategy because the next windfall may come from a surprising place.”