The Diversification Bull Market (with Meb Faber) | Alpha Architect Round Up

Can stocks really underperform for bonds decades?! In this special Alpha Architect Round Up celebrating 3,000 subscribers, we sit down with Meb Faber to dig into surprising market truths, diversification challenges, and why buy-and-hold doesn’t always work outside the U.S.

In this episode, we discuss:
• Why stocks can stagnate or trail other assets like bonds and gold for decades
• The hidden role of farmland and housing in the global portfolio
• Vanguard’s surprising call for international bonds
• Trend-following: misunderstood or just out of favor?
• The pitfalls of institutional investing and why complexity often loses
• Behavioral mistakes investors keep repeating (performance chasing, sitting on cash)
• Which countries and strategies are “totally not crushing it” today—but might be tomorrow

Follow Meb's summer series "20 Things You May Not Know About Markets (or That Might Surprise You)": https://x.com/MebFaber/status/1936136...

Timestamps
00:00 – Intro/ What is surprising Meb in the market?
02:06 – Meb's farm burned?!
05:35 – Vanguard says: Invest in international bonds?
9:56 – Why stocks underperform bonds for decades
13:15 – Is trend following still worth doing?
15:22 – Global deep value: hated markets and big rebounds
18:51 – Colombia: a cheap CAPE case study
26:19 – Why institutions like CalPERS often fail to beat buy-and-hold
32:26 – Liquidity risk, bubbles, and AI-driven trades
38:15 – Behavioral pitfalls: performance chasing and sitting on cash
44:15 – If we started our firms today, what would we do differently?

Follow the Alpha Architect Team and Meb on X:
Wes Gray, PhD: https://x.com/alphaarchitect
Jack Vogel, PhD: https://x.com/jvogs02
Ryan Kirlin: https://x.com/RyanPKirlin
Jose Ordoñez Jr: https://x.com/JOrdonezJr
Meb Faber: https://x.com/MebFaber

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Disclosures:
https://www.alphaarchitect.com/disclo...