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America: Now Trading Like an Emerging Market
+ Richard Bernstein, Lyn Alden, Goldman Sachs, Research Affiliates, Morgan Housel, Low Vol & More
The Idea Farm
April 20, 2025
Sponsored by
“The idea that the future is unpredictable is undermined every day by the ease with which the past is explained.”
Research
Research Affiliates says the current valuation gap favoring small-cap stocks signals the potential to unlock value and outperform. They advocate for an active strategy that utilizes valuation, quality, and momentum, which can can help investors avoid value traps and falling knives.
Source: Research Affiliates; March 1990 - December 2024
Goldman Sachs estimates the effects of larger tariffs and greater policy uncertainty on business investment, hiring, and consumer spending.
As of April 6, 2025.
While trend-following has had a bumpy ride in 2025, Man Group shows that prior major crises saw trend-following strategies lose before delivering substantial gains.
Bonus Content
The low volatility factor has performed well in 2025. Link
Fortune profiled Delta CEO Ed Bastian and how he turned Delta into America’s most profitable airline. Fun fact: In 2024, Delta earned $7.4 billion from American Express—equivalent to 13% of Delta’s revenues. Link
Morgan Housel explored how extreme intelligence can sometimes hinder success. Link
A global team of gambling whizzes bought millions of Texas lottery tickets in 72 hours and won a $57.8 million jackpot. Link
Emerging Markets Shareholder Yield
The Cambria Emerging Shareholder Yield ETF focuses on high-cash distribution companies located in emerging markets.
EYLD’s process goes beyond focusing on just dividends alone to include buybacks and debt paydown, a trio collectively known as shareholder yield. The result is a portfolio of companies that rank highly on shareholder yield and offer strong free cash flow characteristics.
Get emerging markets exposure with companies focused on dividends and buybacks with the Cambria Emerging Shareholder Yield ETF, EYLD.
Distributed by ALPS Distributors, Inc. Investing involves risk, including possible loss of capital. To determine if this Fund is an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors, charges and expense before investing. This and other information can be found in the Fund's full or summary prospectus which may be obtained by calling 855-383-4636 (ETF INFO) or visiting our website at www.cambriafunds.com. Read the prospectus carefully before investing or sending money.
Podcasts
 3/17/2025 - 52 minutes | Tech-focused investor Alex Sacerdote applies his S-Curve framework to key trends today, including AI, the Mag 7, cloud computing, electronic vehicles, and blockchain technologies. |
 4/13/2025 - 55 minutes | Bernstein covers market concentration, the impact of tariffs on the US economy, and why the current environment calls for a shift toward value investing and greater diversification. |
 4/11/2025 - 69 minutes | Alden covers the financial and economic impact of tariffs, why U.S. assets may behave like emerging markets, and implications on Bitcoin, gold and more. |
What Else Is Happening
Did you miss last week’s email?
Nick Maggiulli teamed up with YCharts to compare four different rebalancing strategies.* Link
*Sponsored link