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- Long Abstraction, Short Reality
Long Abstraction, Short Reality
The Idea Farm
March 17, 2024
“Be patient. I think investors as a group have a tendency to always want to be doing something, when often the best course of action is to do nothing at all.”
Research
Ray Dalio - Are We in a Stock Market Bubble? (16 pages)
Ray Dalio explains why the six criteria he looks at when deciding if a stock market is in a bubble lead him to believe the U.S. isn’t in a bubble yet. The piece is full of great charts.
This annual report from UBS is a great guide to historical returns for, covering 35 markets and five composite indexes, with some dating back to 1900. It’s one of our favorite reads every year.
The charts below highlight the riskiness of bonds and how the market capitalizations of different countries have changed since 1900.
WEBINAR: Introducing Cambria’s New ETFs
Meb Faber, Cambria's co-founder, CEO, and CIO will be hosting a webinar that will offer a look into Cambria's newly launched ETFs:
Join Meb on Tuesday, March 19th at 4:15 PM ET.
Carefully consider the fund's investment objectives, risk factors, charges, and expense before investing. This and other information can be found by visiting our website at www.cambriafunds.com. Read the perspective carefully before investing or sending money. Investing involves risk, including potential loss of capital.
The Cambria's ETFs are distributed by Alps Distributors Inc., Member FINRA.
Facts & Figures
Klarna says its AI assistant does the work of 700 people and estimates that the chatbot could help improve its profits by $40 million in 2024. Link
"What CBS (or Paramount) owes the NFL is more than the enterprise value of the company today." Link
“While only 4% of the world’s population, the U.S. often accounts for half or more of worldwide revenue for a new drug.” Link
Roughly 50% college graduates have jobs that don’t use their degrees. Link
“According to the US Bureau of Economic Analysis, non-mortgage interest payments soared to a record $573.4 billion annually in January.” Link
According to the International Energy Statistics, the U.S. produced more crude oil than any nation, at any time, for the past six years in a row. Link
The US isn’t the only concentrated stock market in the world. Link
Goldman Sachs expects stock buybacks to exceed $1 trillion for the 1st time in 2025. Link
Podcasts
 2/19/24 - 77 minutes | Kyle Mowery gives a masterclass on investing in small cap stocks, covering valuation metrics, the impact of macro, and the current set up. |
 2/22/24 - 63 minutes | Starting ~22 minutes into the episode, Bradley Tusk shares his unique approach to VC and his thoughts on how the US Presidential election may play out this year. |
 2/23/24 - 51 minutes | Morgan Stanley Investment Management’s Andrew Slimmon gives a masterclass on quantitative investing and why “the macro changes, but behaviors don’t.“ |
What Else Is Happening
Did you miss last week’s email?
Meb Faber spoke with Peter Atwater and Grant Williams about the markets, which they describe as ‘long abstraction & short reality.’
Deal of the Week
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