BROADCASTS.com

As Meb is back from another series of speaking engagements, Episode 30 starts with a brief recap of his travels. But we hop in quickly, first addressing the election. We\u2019ve had several anxious people write in, requesting commentary on the financial markets now that Trump will be taking over. Meb offers his thoughts, which we can reduce to one word: irrelevant.\nNext Meb gives us an overview of a white paper he\u2019s soon to begin writing \u2013 a rebuttal to detractors of Shiller\u2019s CAPE ratio. He provides some convincing points on why CAPE can be an effective timing tool. You\u2019ll want to hear this if you\u2019re a CAPE fan \u2013 even more so if you believe CAPE is flawed.\nAfter that, we hop into listener Q&A. A few of the questions you\u2019ll hear Meb tackle are:\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0How does CAPE do as a valuation metric for a stock index when the composition of the index is changing or there is significant dilution?\n\xa0\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0When it comes to value filters like P/B or P/E, how do you rank metrics which can become negative or distorted when they get too close to zero?\n\xa0\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0Besides trend following, what other alternative strategies (e.g. long/short, diversified arb, global macro, market neutral, etc.) do you believe are a worthy addition to a balanced portfolio?\n\xa0\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0Please address living through drawdowns versus using trailing stops. Discuss the tradeoff between minimizing drawdowns versus potentially missing huge recoveries.\n\xa0\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0What do you think of using CAPE in Frontier markets? And does the 10-month SMA timing model work in these markets?\n\xa0\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0How do you practically implement the bond strategy laid out in your paper, \u201cFinding Yield in a 2% World\u201d?\n\xa0\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0James O\u2019Shaughnessy\u2019s \u201cWhat Works on Wall Street\u201d references an investing strategy that posted amazing returns for many years. Seems too good to be true. Any insights? Wouldn\u2019t everyone be using this system if it really was this wonderful?\n\xa0\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0Any pointers on how to do your own backtesting?\nAs usual, there\u2019s lots more, including the common investor sentiment of \u201cI\u2019m waiting until the uncertainty dies down before I put more money into the markets,\u201d Meb\u2019s thoughts on cash and inflation, and the benefits of systematic investing. All this and more in Episode 30.\nLearn more about your ad choices. Visit megaphone.fm/adchoices