A new story from The Meb Faber Show

Automatic TRANSCRIPT

What's the first thing i might buy well i might buy stock in the company i worked for i might buy stock in the company my spouse works for or my brother works for my next door neighbor works for or that big global high quality company that lives to town this base two towns away in that i can feel comfortable i'm not gonna lose my shirt on and increasingly that bull market moves into ladder faces it's those characteristics that tend to work that the time for example for cap is bouncing off the bottom of a bear market as a bull market begins in the first third it's it's the exact reverse and even there that's openly the time for small cap value where you get low quality smallcap which is the version of things that people in the bear were so afraid with absolutely die if things ended up being as bad as people previously feared that when they're not quite that bad you get this huge relief bounce from small value does best in the first early phases of a bull market which is the kind of data mine and the in the small cap effect and take five the first third of the five bull markets out of the data series you find big gap doing markedly better than small up in the rest of history it's it's that part that nobody ever talks about it that which is unsettled going back to the batch it principle and at the same time i mean fundamentally it's it's so easy to buy the big easy late in a bull market that a lot of people don't want to do it so then they under perform a lot of people sit there and say boy you know i to be doing something tricky bastard of a bull market find a needle in a haystack is an expensive game.

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