Episode summary
Webinar Replay: Meb Faber - Navigating 2026
The Meb Faber Show
· · Hosts: Meb Faber
Summary
The discussion centered on how investors should navigate 2026 after a huge 2025, with Meb Faber arguing that the biggest issue remains extreme US valuation versus the rest of the world. He said the US is at the most expensive relative valuation in its history versus foreign markets, while many developed and emerging markets still trade at far lower multiples. That setup, in his view, favors diversification away from pure US market-cap exposure and toward cheaper foreign stocks, value, and equal-weight approaches.
Faber also emphasized that the current environment is validating two of Cambria’s core themes: trend following and real assets. He said trend funds are now capturing major right-tail moves in foreign equities, precious metals, miners, and commodities, while gold and silver strength reflects a broader macro regime shift investors largely missed. He noted that many portfolios still have little or no exposure to those assets.
A major operational topic was Cambria’s 351 ETF conversion strategy, which he described as a tax-deferred way to move appreciated concentrated portfolios into diversified ETFs. He said the firm plans more launches this year and expects continued interest from advisers and clients who want to reduce concentration risk without triggering a taxable sale.
Key takeaways
- Meb Faber said US stocks are at their richest relative valuation in history versus foreign markets, making non-US diversification more attractive.
- Faber argued that trend following is now benefiting from the right tail in foreign stocks, precious metals, and commodities, not just downside protection.
- He said 351 ETF conversions can help investors move concentrated appreciated holdings into diversified ETFs without triggering a taxable event.
- Faber prefers cheap value, quality, and equal-weight exposures over pure market-cap weighting, especially after the US run.
- He said gold and silver’s surge reflects a macro shift many investors still have not positioned for.
Notable quotes
“We're sitting here in 2026 with markets at all-time highs. Um, and you really had a monster year across the board”
“you have a similar spread today. That hasn't mattered for a long time”
“the really cheap things outside the US started to go up”
“trend is interesting. And you know this is this goes back to my first paper two decades ago”
How the episode opens
So, let's talk about the year that was, the year that's coming. First of all, y'all, what a year last year. My goodness.
Um, market returns are always extreme and things crazy, but you know, pat yourself on the back, drink some champagne, have a beer, some tea, whatever your beverage of choice is, kombucha. Um, and just and just realize how magical things have been. We're sitting here in 2026 with markets at all-time highs.
Um, and you really had a monster year across the board. Uh, but but we'll we'll talk a little bit about that and then get into next year and what to kind of think about it and do. Um, I assume almost everybody here knows who I am, who who we are.
It's going to be hard to believe, but you guys, Cambria, the company, parent company, I started 20 years ago this year. We'll have to throw some celebration at the year end anniversary. You guys think of any good ideas, let us know ways we can celebrate.
I don't feel that old, but here we are. It feels like just yesterday, you know, um, we were reviewing, we now have six funds. So, we started launching ETFs in 2013.
We now have six funds that are 10 years old. So, we're gonna have a whole house full of teenagers here soon. Um, we have uh 20 funds now, which we'll get into in a minute.
And, uh, it's pretty cool. You know, all of our funds, the the cost is lower than the category average. We have, at least as of the end of the year.
I think it'll be even better next month. Every single one of our Morning Star rated funds is three, four, five star funds. So, we're having a moment.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- 2026 portfolio positioning
- concentrated us market
- macro volatility
- portfolio balance and resilience
- etf conversions
Companies and tickers mentioned
- Cambria Investment Management, LP
- ALPS Distributors Inc.
Watch the episode
Watch “Webinar Replay: Meb Faber - Navigating 2026” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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The Meb Faber Show, this episode and its artwork belong to The Idea Farm. Octagon is not affiliated with the show; this page is an independent summary.
