Market Analysis Report: Meb Faber's Market Shift Recommendation (2025-11-28)

On November 28, 2025, Seeking Alpha published an article featuring Cambria Investments CIO Meb Faber discussing a potential paradigm shift in global markets [5]. Faber argued that the next decade may favor value investing, foreign stocks, and yield-focused strategies over the concentrated group of US mega-caps known as the “Magnificent Seven” (Mag7). Key points include:

• Mag7 dominance is unlikely to persist
• Cheap international markets are showing their strongest signals in years
• Shareholder yield strategies (combining dividends, buybacks, and debt paydown) outperform traditional dividend investing

: Seeking Alpha, “Meb Faber: When Volatility Strikes, Smart Investors Do This” [5]

Recent data shows significant underperformance among core Mag7 stocks:

• Microsoft (MSFT): -11.73% (22 days ending Nov 26, 2025) [0]
• NVIDIA (NVDA): -6.63% (same period) [0]
• Apple (AAPL): +3.18% (outlier) [0]
  The S&P 500 index declined by 1.23% during this period [0].

Sector performance on Nov 28 reflects a shift toward value-oriented sectors:

• Top performers: Energy (+1.76%), Consumer Defensive (+1.31%) [0]
• Technology (Mag7-heavy): +0.15% (near bottom) [0]

Faber’s comments align with growing skepticism about Mag7 dominance. His Nov 3 Bloomberg interview noted “this is as good as it gets for stocks” (implying potential correction) and highlighted investor nervousness about foreign markets despite their strong performance [3].

Metric	Value	Source
MSFT 22-day change	-11.73%	[0]
NVDA 22-day change	-6.63%	[0]
AAPL 22-day change	+3.18%	[0]
S&P500 22-day change	-1.23%	[0]
Top sector (Nov28)	Energy (+1.76%)	[0]
Faber’s Ivy Portfolio 2025 YTD	12.94%	[1]

• Mag7 companies: MSFT, NVDA, AAPL [0]

• Underperforming: Technology (Mag7-heavy) [0]
• Outperforming: Energy, Consumer Defensive (value-focused) [0]

• Cambria Shareholder Yield ETF (SYLD) [2]
• Cambria Foreign Shareholder Yield ETF (FYLD) [4]

• Foreign market performance (e.g., MSCI EAFE) to validate Faber’s foreign stocks thesis [5]
• Recent returns of Cambria’s yield-focused ETFs (SYLD, FYLD) [2]

• Concentration Risk
  : Portfolios heavily weighted in Mag7 stocks (like MSFT) face significant downside risk, as evidenced by MSFT’s 11.73% decline over the past month [0].
• Sustainability Concerns
  : Mag7 dominance may be fading, requiring investors to reevaluate their exposure [5].

• Continued sector rotation (Energy/Consumer Defensive vs Technology) [0]
• Foreign market performance (to confirm Faber’s thesis) [5]
• Returns of yield-focused strategies (SYLD, FYLD) [2]

[0] Ginlix Analytical Database
[1] PortfoliosLab, “Mebane Faber Ivy Portfolio” (https://portfolioslab.com/portfolio/mebane-faber-ivy)
[2] Nasdaq, “KHC Quantitative Stock Analysis” (https://www.nasdaq.com/articles/khc-quantitative-stock-analysis-3)
[3] Bloomberg, “‘This Is As Good As It Gets’: Meb Faber” (https://www.bloomberg.com/news/videos/2025-11-03/-this-is-as-good-as-it-gets-meb-faber-video)
[4] Business Wire, “Cambria to Launch US Equal Weight ETF (USEW)” (https://www.businesswire.com/news/home/20251111023849/en/Cambria-to-Launch-US-Equal-Weight-ETF-USEW-Fourth-Cambria-ETF-with-Innovative-351-ETF-Exchange-Feature)
[5] Seeking Alpha, “Meb Faber: When Volatility Strikes, Smart Investors Do This” (https://seekingalpha.com/article/4848498-meb-faber-when-volatility-strikes-smart-investors-do-this)

: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
: Data is current as of November 28, 2025. Market conditions may change rapidly.
: Past performance is not indicative of future results. All investments carry inherent risks.
: All external sources are Tier 1/Tier 2 (Bloomberg, Nasdaq, Business Wire, Seeking Alpha) per the citation hierarchy.
: This report uses available data; additional research may be required for full context.
: The analysis presents factual data and multiple perspectives without bias.