Meb Faber, the CEO and chief investment officer of Cambria Investment Management, told Business Insider he was not surprised by the market's plunge — and not just because one of his funds is soaring.
Perhaps one thing that is unprecedented is the social distancing and business shutdowns that the coronavirus is simultaneously forcing on cities worldwide. The best way to hedge this stock-market risk is not taking it in the first place, Faber said. That does not mean being uninvested. Rather, it means filling a portfolio with multiple kinds of assets that can counterbalance each other.
Gold also had a 0.8% average return but logged a 17% loss during the financial crisis in October 2008 — matching the stock market's loss and providing zero diversification benefit.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Op-Ed: Coronavirus is restricting market efficiency — We need a two-week trading holidayCNBC's Julianna Tatelbaum argues why it's time that stock markets were shut for two weeks to allow the business community to adjust to the new reality brought on by the coronavirus. Agreed. Much needed at these times. COVID2019 super bad idea.... Translation: We are long, caught out and the market crash is making us look stupid.
Source: CNBC - 🏆 12. / 72 Read more »
Stock market outlook: S&P 500 to hit 2,000 on coronavirus worries - Business InsiderThe coronavirus' 'financial and societal devastation' will drag the S&P 500 to its lowest level in four years before a sharp recovery, Goldman said.
Source: BusinessInsider - 🏆 729. / 51 Read more »
How hedge funds are using alt-data to make bets on coronavirus - Business InsiderInvestors are looking to get an early read on supply-chain disruption and movie-theater attendance to track the economic fallout of coronavirus.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Even the world's biggest hedge fund was caught flat-footed by the coronavirus market sell-offThe Financial Times reported Bridgewater's flagship fund is down about 20% for the year following the swift plummet from all-time highs into a bear market from stocks. Hedge funds suck!!!
Source: CNBC - 🏆 12. / 72 Read more »
Stock picks to buy 13: Companies with low coronavirus, recession risk - Business InsiderBank of America says to buy companies that have both minimal China exposure and are trading at inexpensive levels — and offers a handful of picks. At this moment in time with a global health crisis - who cares - why don’t they focus their energy on supporting this new challenge ?
Source: BusinessInsider - 🏆 729. / 51 Read more »