Meb Faber (Cambria Investments)

[winston]

Meb Faber, the CEO of Cambria Investments, is a widely respected quant analyst.

Here’s his take:

Is buying stocks at an all-time high a good idea?

No, it’s not a good idea, which should surprise no one.

The fact that it is a GREAT idea, well, that should surprise everyone.

Meb detailed the results of a back-test he ran that had two rules: remain in stocks if they’re trading at all-time highs at the end of the month. If they’re not at all-time highs, then move into to government bonds.

Here’s the conclusion:

It turns out, it’s a pretty damn good strategy. Better returns than just stocks, lower volatility, and WAY lower drawdowns...

It’s an acknowledgement that all-time highs are nothing to be afraid of.

Source: Investor Place