As Good As It Gets? | Meb Faber on U.S. Stock Valuations, Trend Following, and Endowment Allocations To Private Markets
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In this episode of Monetary Matters, Jack welcomes Meb Faber, founder of Cambria Funds, to discuss the extreme valuations in the US stock market and where investors can still find value. Meb breaks down historical market cycles, comparing the current AI boom to the railroad bubbles of the past, and explains why "expensive uptrends" can persist longer than logic dictates.
The conversation shifts to the institutional world, where Meb challenges the status quo of major endowments like Harvard and CalPERS, arguing that complex private equity strategies can often be beaten by simple, liquid ETFs. Finally, Meb reveals a tax code loophole (Section 351) that allows investors to swap concentrated stock positions for diversified ETFs on a tax-deferred basis. Recorded on November 20, 2025.
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Pieces Discussed:
“Exceptional Expectations: U.S. vs. Non-U.S. Equities”: https://www.aqr.com/Insights/Research/White-Papers/Exceptional-Expectations-US-vs-Non-US-Equities
“LEARNING TO LOVE INVESTMENT BUBBLES: WHAT IF SIR ISAAC NEWTON HAD BEEN A
TRENDFOLLOWER?”: https://mebfaber.com/wp-content/uploads/2016/05/SSRN-id1923387.pdf
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1:12:27
Venture Capital’s Collision with Public Markets, the Dry Powder Bubble, and VC Metrics that Lie | James Wang of Creative Ventures
This Other People’s Money episode is brought to you by CAIA.nxt. Learn more about their alternatives education courses for investment advisors and get 10% off with code MMTEN: https://caia.org/content/welcome-monetary-matters-and-other-peoples-money-listeners
James Wang, General Partner at Creative Ventures and author of “What You Need to Know About AI” joins Other People’s Money to discuss the most pressing issues facing venture capital right now including: VC’s collision with public markets, the “RIAifaction” of VC firms, and the reality that there is still too much dry powder propping up venture valuations. Wang also discusses the difficulty of judging VC funds off of typical metrics like MOIC and TVPI, especially when the fund is still in the middle of its life cycle. Wang closes the podcast with his views on AI as expressed in his new book and the reasons why he believes many are being distracted by first-order effects.
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Timestamps
00:00 Intro
01:22 The Collision of Public and Private Markets
04:13 Venture Capital is Following the Same Path as Other Asset Classes
05:52 Venture's Shifting Role in Portfolios
13:36 Venture Capital Emerging Managers
18:39 Corporate Venture Capital
20:58 The Most Active Venture LPs
22:45 Sovereign Wealth Funds and Strategic Venture
26:56 RIAs and Private Wealth as the Next Source of Capital
31:58 The Emergence of Star Athletes and Actors as VCs
33:41 Most VCs Don't Add Value to Portfolio Companies
35:31 Comparing VC Funds: The Metrics That Lie
43:32 Sneaky VC Marketing Tricks and Marketing Materials
48:33 Reference Checks and Speaking with Founders
50:17 The Dry Powder Bubble
57:41 What You Need to Know About AI
59:47 Tracking AI Progress
01:03:42 The Politics of AI
01:07:32 The Next Stage of Training AI Models
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1:15:58
Demystifying First Brands Group’s $ 12 Billion Bankruptcy | Robert Smith of the Financial Times
Robert Smith, Corporate Finance Editor at the FT, joins Jack to discuss the recent $12 billion bankruptcy of First Brands Group that has shocked the financial world. He explains the history of First Brands, its collapse, and the company’s ongoing bankruptcy proceedings. Robert also discusses the larger world of private credit and if First Brands is the first of many ‘credit cockroaches.’ The bankruptcy is of particular interest given the fact that it could be a signal of further problems on the horizon of the private credit market. Recorded on November 21st, 2025.
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First Brands Collapse in a Nutshell https://on.ft.com/48ptTUu
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1:02:29
The Fed Won’t Pop AI: It Will Save Housing | Blue Door’s Dan Krausz On The Three Neutral Rates, The Liquidity Waterfall, and Why Profits Rising While Employment Falters Is Not Bearish For The Stock Market
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Dan Krausz of Blue Door Asset Management joins Monetary Matters to argue that the global economy is currently driven by two dominant macro factors: aggressive fiscal policy and Artificial Intelligence. He breaks down the concept of a "three-speed economy," explaining how 6% fiscal deficits create a "liquidity waterfall" that funds the government first while leaving housing and small businesses in a silent recession. Dan posits the contrarian view that the Federal Reserve may actually need an AI productivity boom to manage long-term inflation and debt, making the potential "AI bubble" a necessary economic tool rather than a threat. Finally, he outlines his three critical rules for positioning in this environment, explaining why investors must "avoid the middle" and why the opportunity is shifting from AI infrastructure to implementation. Recorded on November 18, 2025.
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1:21:35
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1:21:35
Is The AI Bubble Popping? | Jack and Max on Data Center Debt, Fragile Markets, and Insurance Companies
This Monetary Matters episode is brought to you by Fiscal.ai. Sign up for a 2-week free trial and get 15% off any paid tier at: http://fiscal.ai/mmAs investors’ outlook on AI capital expenditure sours, Jack and Max explore the rising debt issuance to fund artificial intelligence development, and the faltering share prices of companies with exposure to the “AI factor”: the hyperscalers (particularly Oracle), the chip companies, and the neoclouds such as Coreweave and Nebius. Jack then looks at two insurance companies, Kinsale and Palomar, as insurance sector does its part to hold up the S&P 500. Jack and Max also give an update on Chinese fintechs at the end. Recorded on November 21, 2025.Follow Jack Farley on Twitter https://x.com/JackFarley96Follow Max on Twitter: https://x.com/maxwietheFollow Monetary Matters on:Apple Podcast https://rb.gy/s5qfyhSpotify https://rb.gy/x56dx5YouTube https://rb.gy/dpwxez
Timestamps:
00:00 Intro
02:28 Debt Fueled CapEx Boom
08:23 "AI CEOs Are Building a God"
11:24 The Real Speculative Bubble
15:51 NeoCloud Risk
17:53 Fiscal AI
19:11 Healthcare and Insurance Strength
21:38 Kinsale Capital Group
27:38 Factors Benefiting Insurance
29:12 Palomar Holdings
33:48 Jobs Data and December Fed Meeting
37:26 Chinese Fintech Bloodbath
40:32 Conclusion
France