Penny stock investing – Episode #20: “Listener Q&A” | Meb Faber Research

Penny stock investing

Episode #20: “Listener Q&A”

Guest: Episode #20 has no guest, but is co-hosted by Meb’s co-worker, Jeff Remsburg.

Date: 9/12/16

Run-Time: 39:29

Topics:  Episode #20 is another “Listener Q&A” episode. Meb starts by telling us about his frustration after doing a guest panel on CNBC earlier in the morning. (Hint: questions about The Fed tend to annoy Meb…also, if you ever chat with him in person, do not refer to a 1% market move as a “major” move.) But soon we change gears, and Meb answers questions including:

  • When following a trend strategy based on a 100 or 200-day moving average, is the idea to buy/sell on Day 1 of the broken trend? Or is it more nuanced?
  • Is there some magic number of days (when following a trend strategy) that is the right length?
  • (The above questions dovetail into a conversation about the #1 mistake the majority of investors make when using a trend following approach – expecting it to be a return-enhancing strategy.)
  • What are good trend strategies for sideways/chainsaw markets?
  • How about combining a momentum strategy with a simple 10-month trend strategy?
  • When looking at managed future funds, aside from cost, any thoughts on what might warrant choosing one fund over another?
  • (This dovetails into an interesting admonition from Meb in which he suggests listeners should do their own homework on issues like this—after all, if you don’t fully understand a fund’s strategy and have your own reasons for buying it, how will you know whether a 20% drawdown reflects a bad strategy, bad execution, or just bad luck?)
  • Can you earn a 10% CAGR with Dalio’s All Weather portfolio without fear of a major drawdown?
  • (This dovetails into a question about asset allocation – does it really dominate long-term returns? A listener thought he heard a difference of opinion between Meb and a guest on a past episode.)

There are more questions, including one hand-written and mailed to Meb by a college student. He wants to know what qualities, skills, and abilities Meb looks for in new hires at Cambria, as well as what unique skills a college grad should bring to his/her employer. What’s Meb’s answer? Find out in Episode 20.

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To listen to Episode #20 on iTunes, click here

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Links from the Episode:

Transcript of Episode 20:

Coming soon.

– Penny stock investing

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