Sep 28 2020 14 mins 236
In today’s episode of the Cambria Fund Profile Series, Meb discusses the Cambria Global Value ETF (GVAL). Meb walks through why it’s important for investors to consider valuations in their process, and how investors can be thinking about portfolio positioning given stock market valuations around the world. He offers a historical perspective on market valuations through the lens of the Shiller PE ratio, often referred to as the Shiller CAPE ratio. He covers the home bias phenomenon, which shows that investors tend to invest more heavily in their home countries. He talks about why this bias should be avoided, and that going back to 1980, US and foreign stocks have traded at similar valuations. He goes on to point out that, from a valuation perspective, no specific market is any more special and deserving of a long-term valuation premium than any other. As the episode winds down, Meb walks through the portfolio construction process of the ETF. All this and more in this Cambria Fund Profile Series episode, featuring the Cambria Global Value ETF (GVAL).
