The Meb Faber Show · Friday, September 4, 2026
Inigo Fraser Jenkins discusses the increasing difficulty for investors to find diversification in the current market, suggesting that the US market, despite its concentration and potential discomfort, may be a primary source of real returns. He acknowledges that this comes with trade-offs like higher volatility and illiquidity.
“it's hard to find diversification in the world today. And one of the greatest challenges is how do you find diversification in future?”
“And I think that there's a good case to be made that you do find sources of real return in the US, now less than people have been used to historically, but this is not some great bull story about the future returns of stock market, it's just a better than the other alternatives.”
“So yes, it's uncomfortable, but I think that that's the reality that we face, which is that trade-off of getting real return, which matters, I would argue more than anything else, against the overall risk of your portfolio, is a more challenging trade-off.”