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/1936136442079855067
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
Subscribe for more insights on diversification, market trends, and smart investing strategies!
For more educational resources, visit:
https://www.alphaarchitect.com
Disclosures:
https://www.alphaarchitect.com/disclosures
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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/1936136442079855067
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
Subscribe for more insights on diversification, market trends, and smart investing strategies!
For more educational resources, visit:
https://www.alphaarchitect.com
Disclosures:
https://www.alphaarchitect.com/disclosures
Can large value stocks hold their own against small value stocks? The answer might surprise you!
In this video we challenge the narrative that small value stocks dominate, explore what really matters for long-only value investors, discuss the impact of liquidity, rebalancing, and portfolio weighting, and examine evidence from U.S. and international markets by examining Jack Vogel's academic paper, "Long Only Investing: Does Size Matter?".
Key Topics:
• Why long/short results don't apply to most investors
• The case for equal-weighting large value stocks
• Liquidity advantages of large caps
• Factor decay and rebalancing frequency in portfolios
• Market cap weighting risks in portfolio construction
Timestamps:
0:00 – Intro: Do small value stocks really outperform?
1:00 – The finding: Size does not matter!
2:54 – What's large and small?
4:01 – Large vs. small horse race results
4:45 – Economical vs. statistical significance
6:03 – The impact of transaction costs
8:20 – Size and factor decay
9:21 – Out-of-sample tests & variations
10:22 – What happens if one value-weights large value?
12:28 – What does this all mean for investors?
13:41 – Outro
Sources:
“Long-Only Value Investing: Does Size Matter?” by Jack Vogel, PhD: https://alphaarchitect.com/wp-content/uploads/2022/11/AA-JBISFactorInvesting22LongOnlyValueInvesting.pdf
AQR’s “The Devil in HML's Details” by Asness and Frazzini: https://www.aqr.com/Insights/Research/Journal-Article/The-Devil-in-HMLs-Details
Subscribe for more insights on diversification, market trends, and smart investing strategies!
For more educational resources, visit our website:
https://www.alphaarchitect.com
Disclosures:
https://www.alphaarchitect.com/disclosures
The 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/1936136442079855067
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
Subscribe for more insights on diversification, market trends, and smart investing strategies!
For more educational resources, visit:
https://www.alphaarchitect.com
Disclosures:
https://www.alphaarchitect.com/disclosures
