Profile picture
Meb Faber
@MebFaber
, 6 tweets, 2 min read Read on Twitter
1/ Responses to my tweet as to why my emerging markets allocation decision is foolish, which of course makes me more bullish on the thesis



-cannot trust Financials
-lack American ingenuity and /or ambition
-assets can be seized by local government
2/ -other security risks
-weaker infrastructure in most markets
-fx risk
-ever depreciating currencies
-If a market has been "emerging" for 50 years, it's probably not actually emerging
-This is terrible
3/ -Logical but remember higher risk for those greater potential returns. Less transparency, weaker legal system, lower liquidity, etc.
-Cheap for a reason.
-Higher corruption, less diversification (developing markets are usually just banks and utilities).
-Bigger mess
4/ -And they are all in recession or depression
-Higher share issuance...
-Counterpoint: America
-Somebody missed @patrick_oshag podcast with @PeterZeihan
-Trump's reckless economic policies will have consequences.
5/ -Should I load my boat with Italian Stocks than?!?! You km now the answer and culture has something more to do than your Excel spreadsheets on value or (sh)value
-I remember hearing the same argument in the mid 90's...
6/ -Shaky rule of law, insider trading, questionable GAAP, chaebols, dictators, military coups, expropriations, fickle tax rulings.
-Were all trying so hard to be smarter than the next guy. Or at least to appear to be.

;)
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Meb Faber
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

More from @MebFaber see all

Profile picture
Meb Faber
@MebFaber
1/ I've been very vocal the last few years about the importance of global investment diversification, yet most Americans continue to allocate 80% to US stocks.

Let me explain, with some help from @bridgewater, why that is a horrible, and easily avoidable mistake.
2/ How do I know you put 80% in the US?

I wrote a book on stock market valuations (free here: cambriainvestments.com/investing-insi… …), and used to give speeches and ask people the same question.

We'd collect the responses and the answer was always ~80%. Our Twitter poll said the same.
3/ If you look at the global stock market weighted by size, the US is about half, but most of you invest 80%.

via @jpmorgan
Read 23 tweets
Profile picture
Meb Faber
@MebFaber
For the investment professionals out there. What belief do you hold that the vast majority of your peers (75%+) do not share?

Here's a few of mine in no particular order....apologies for offending everyone in advance!
1. Investing based on dividend yield alone is a tax-inefficient and nonsensical investment strategy.
2. The Federal Reserve has done a good job.
Read 11 tweets
Profile picture
Meb Faber
@MebFaber
1/ Part 4 of 4: Implementation

Part 1


Part 2


Part 3
2/ So most of what we've talked about is pretty simple.

Start with the global market portfolio as a base case allocation, it's diversified and you can implement it for ~free.

That's roughly half in stocks and half in bonds. And of that, it's half US and half foreign...
3/ Which reminds me of the Bogle quote:

"I'm about 50 percent stocks and 50 percent bonds and I spend half my time worrying about why I have so much in stocks and the other half worrying about why I have so little in stocks."
Read 32 tweets

Related threads

Profile picture
Yudhanjaya Wijeratne 🌀
@yudhanjaya
Here's what I think of as the dear #American journalists thread 2.0. It concerns Facebook and #lka, hate speech detection, and language complexities of the Global South, where @LIRNEasia (the think tank I work at) operates.
It seems a perfectly natural reaction, given the phenomenal amount of hate speech, to urge @facebook and @twitter to get their shit together and take it off the platform. Post March 2018, we - as in Sri Lankan civil society - tried.
In fact, one of the longest running arguments @sanjanah, @NalakaG and myself have had with the @facebook India team is that they consistently fail to live up to their own damn Community Standards, and only seem to pay attention as long as the @nytimes or @WIRED is slamming them.
Read 25 tweets
Profile picture
covert_extrovert
@ExtrovertCovert
1) @realDonaldTrump @WhiteHouse @POTUS
#QAnon drop No. 2919...
Repost of bottom 2/3 of 1668. #Nunes notes the unofficial sharing of intel by #FVEY's nations. [#Illegally!] Welcome 2the #DS!
Link 2 @GeorgePapa19 #Tweet on #Clapper's recent silence.
2) #QAnon drop No. 2920...
Stacked drop, last over a repost of #Q 1164.
This is an explanation of how #FVEY was used to circumvent data collection laws. Also, how #Hussein, #HRC, #LL,Brennan & #Clapper met in a #SCIF 2plan their #SurveillanceOp & #CoupAttempt.
3) #QAnon drop No. 2921...
#Q drops a repost of No. 1828.
This drop is a heavy data set & the next tweet in this thread will be of a decode graphic of No. 1828...
Read 56 tweets
Profile picture
Dr Henry
@HenryJOncology
I will now proceed to go on a #tweetrant / #tweetorial with regards to #Pharmaceutical #biotech pricing (focus on #cancer).

Very timely, also see @WSJ wsj.com/articles/big-p… on price hikes.

For the record, no #COI / #FCOI. Feel free to contribute to this discussion.
Lets look at the problem from the @PhRMA / business perspective. And lets suppose you are a wonderful company, started by wonderful people who just want to make the world a better place (I know, not real, but stay with me for a minute).
You start with a great idea / or pipeline platform and start selling this concept to #VC #VentureCapital, and lets assume that this is actually a really good idea. What is the needed return on investment to make this worth while. A: further R&D must exceed the cost of capital.
Read 17 tweets
Profile picture
Hurricane Watcher
@GodlessNZ
#American friends, if I lived in your great country, near an outstanding public official like @SecretaryCarson, I'd respond to this #LeftistHarassment by standing silently outside with 🇺🇸 & a #MAGA sign.

"Protesting" can't undo the election. It helps with #WalkAway though.😄
Exhibits A, B, C, and D.

Stay classy, Leftists. #WalkAway
The fed officials the Left is targeting are protected by one or more of the:
>US Secret Service
>Federal Protective Service (DHS)
>The US Marshals (part of the DOJ)
>US Capitol Police
>Other agencies at fed, state & local level
>Private security.

This won't happen>
Read 3 tweets
Profile picture
Headsnipe01
@Headsnipe011
American Natural Gas is Fueling the World’s Future

@drawandstrike @ThomasWictor @TheChiIIum @HNIJohnMiller @jihadaeon1 @rising_serpent @_ImperatorRex_ @Debradelai @LarrySchweikart

whitehouse.gov/articles/ameri…
What fuels our future? That’s the question we’re asking this week at the World Gas Conference (WGC), which is being held here in the United States for the first time in 30 years.
And the clear answer is American ingenuity and innovation, coupled with freedom and a commitment to developing all of our energy resources.

Thanks to this combination, our country is in the midst of a spectacular period of energy progress.
Read 25 tweets
Profile picture
Seth Abramson
@SethAbramson
Either this is a doctored image or Stone's passport-"proven" claim he never left America between 2010 and 2017 except to go to the Bahamas (2010) and Romania (2017) is false.

It's no wonder Mueller is investigating Stone and—per Nunberg—considering criminal charges against him.
2/ And by the way, if it's a doctored image, I sure hope Stone said so *unambiguously* if at any point he turned this image over to Bob Mueller—or simply discussed it with him. Stone is playing with fire by pretending to be a traitor to the United States, and it may yet burn him.
3/ One possibility is that Stone made this trip in late '17 or early '18, in which case he *was* trying to mislead reporters when he showed them a single page from his passport showing trips from '10 to '17—he wasn't willing to reveal his trolling. Who plays with fire like this?
Read 6 tweets

Trending hashtags

#VenezuelaEnDefensaDeLaPaz #germanhistory #ThoughtsAndPrayers #MAGA #Memo #GeneralPublic #WakeUp #markets #Nifty #Brennan #VoteSRWP #Freedom #Strzok #Russia #au #NBFC #Trust #Ted #FreedomCaucus #Delta #American #LaVerdadSeImpone #PaulMcCartney #opendara #MainStreamMedia
Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!