Global Value Cycles, Home-Country Bias & the Discipline Behind ‘Good Losses’: Part 2 with Meb Faber

In Part 2 of Adam’s conversation with Cambria CIO and researcher Meb Faber, they dig into the realities of global investing, why home-country bias hurts more portfolios than advisors realize, and how disciplined rules can turn “losses” into part of a long-term edge. They also discuss value cycles, trend signals, real assets, and why diversification still works—even when it feels uncomfortable. 

Whether you're refining your portfolio process, rethinking risk, or helping clients understand how markets really behave, this episode offers clear, practical insight advisors can put to work immediately.
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Episode Timestamps
00:00 – Welcome & Part 2 kickoff
00:45 – Why U.S. investors are overexposed by default
03:00 – Home-country bias in both advisors and clients
05:20 – When foreign markets outperform the U.S.
08:10 – Value cycles and market regimes
12:00 – Why diversification feels bad in real time
15:00 – Trend following and the role of “good losses”
18:30 – Thinking in decades vs quarters
21:15 – How narratives help investors stay disciplined
24:40 – Small caps, value, and non-U.S. markets entering new cycles
28:00 – The emotional challenge of sticking with a system
31:00 – Real assets, gold, and inflation regimes
34:00 – Portfolio construction lessons advisors overlook
37:00 – Closing thoughts from Meb (end of Part 2)
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Key Takeaways
💡 Home-country bias is one of the biggest blind spots in portfolio construction.
Most investors dramatically overweight the U.S. without realizing how often other countries lead. 
💡 Diversification still works — it just rarely feels good in real time.
Global markets rotate in long, humbling cycles. 
💡 “Good losses” are part of a disciplined system.
Trend following isn't prediction — it’s survival through deep, behavioral drawdowns. 
💡 Value, small caps, and foreign markets may be entering a new leadership cycle.
Patience is required because these cycles play out over years, not months. 
💡 Clients absorb stories better than statistics.
Simple analogies often outperform charts when explaining market behavior. 
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Key Quotes
🗣 “Home-country bias is one of the biggest problems investors don’t realize they have.” — Meb Faber
🗣 “Diversification works in practice, not in emotion.” — Meb Faber
🗣 “A good loss is one that follows your rules.” — Adam Koós
🗣 “Markets move in decades, not quarters.” — Meb Faber
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Connect with Meb Faber
Website: https://mebfaber.com
Cambria Investments: https://cambriainvestments.com
The Meb Faber Show: https://themebfabershow.com
Idea Farm Research: https://theideafarm.com
X (Twitter): https://twitter.com/MebFaber
YouTube: https://www.youtube.com/@MebFaber
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