Editor’s Note: This is a reprint of a Big Saturday Interview with author Mebane Faber conducted by David Penn in 2009. We hope you enjoy it.
Tactical asset allocation, diversification and rebalancing are among the keys to long term investing success, according to the research done by Mebane Faber and published in his new book, The Ivy Portfolio. These are the strategies taken by the endowments of institutions like Harvard and Yale, profiled in the book, which have outperformed the S&P 500 for decades.
Here in the second half of our conversation with Mebane Faber, who is portfolio manager at Cambria Investment Management, we focus in on the final piece of The Ivy Porfolio puzzle: the role of market timing. While conceding that “market timing” has gotten a bad name in that past, Mebane Faber explains how a disciplined investing approach using a very straightforward market timing strategy can be a critical component in an overall investment strategy that can both outperform in the best markets and help you keep your gains in the worst markets.
Mebane Faber specializes in equity and global tactical asset allocation. He is also the developer of AlphaClone, an online tool that provides backtesting on and insights into the investing strategies of top hedge fund and money managers from individuals like Warren Buffett to composites like AlphaClone’s Tiger Cubs Funds Group. Read his blog at MebaneFaber.com.
To read Part 1 of the interview, click here.
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