What is Marc Faber’s portfolio?
Marc Faber’s portfolio is exposed to 50% stocks, 25% bonds, and also includes gold. It can be built with 6 ETFs. The portfolio is a medium-risk portfolio.
For the past 10 years, Marc Faber’s portfolio has returned 7.48 with a standard deviation of 9.06. The dividend yield is 1.93. The 30-year return is 8.28%. Year to date Marc Faber’s portfolio has returned -7.13%. Last year it returned 10.78%.
How do you build Marc Faber’s portfolio with ETFs?
- 13.00% US Large Cap (VV)
- 25.00% REITs (VNQ)
- 8.00% International Developed Blend (VEA)
- 4.00% Emerging Markets (VWO)
- 25.00% Total US Bond Market (BND)
- 25.00% Gold (IAU)
What is the historical return of Marc Faber’s portfolio?
You can see the historical return of Marc Faber’s portfolio below.
|Name||Asset class count||Year to date||Return in 2020||10 year return||CAGR since 1989 (%)||Risk level||Expense ratio|
|The Marc Faber Portfolio||6||-7.13||10.78||7.48||8.28||1||0.11%|
How does Marc Faber’s portfolio compare to the best portfolios?
Below you can see the returns of the best portfolios that we have benchmarked.
Who is Marc Faber?
Marc Faber is the legendary permabear and author of the Gloom Boom & Doom Report.
He is credited for advising his clients to exit their positions before the 1987 stock crash.
His specialty is emerging markets and frontier markets.
Marc Faber is also a gold bug, despite his protestations. He has, on many occasions, hailed gold as a sound investment and has multiple times said that gold is his largest holding.
“When people talk about people who are optimistic about gold, they call them ‘gold bugs.’ A bug is an insect. I don’t call equity bugs ‘cockroaches.’ Do you understand? There is already a negative connotation with the expression of ‘gold bug.'”
– Marc Faber
Marc Faber is a permabear, which means he always remains skeptical of the market. He always fears the next downtown. The permabear mentality can hurt your investment returns because you can get so scared that you will refrain from taking any significant risk. But you need to take risks if you want returns. Risk and return are joined at the hip.
Marc Faber is known as Dr. Doom because of his always negative market sentiment.
His sentiment is excellently presented in his book Tomorrow’s Gold, Asia’s age of discovery. In that book, he tackles market cycles and focuses to a large degree on the downswings instead of concentrating on the upswings.
Description of the Marc Faber portfolio
Marc Faber’s trepidation of the market shows in his investment portfolio. The model portfolio comes from Meb Faber (no relation) and his book Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies.
Marc Faber’s portfolio is tilted heavily towards real assets. Real assets cover real estate, commodities, precious metals, timber, and farmland. It is a rather strange term but denotes that there are tangible physical things behind your investment. I would argue that an investment in Apple is very much an investment in real stuff as well.
50% of Marc Faber’s portfolio is in real assets, gold, and REITs. 25% is in bonds.
It is very much like the Permanent Portfolio by Harry Browne.
Marc Faber’s portfolio is conservative.
Resources for the portfolio
Suggestions for your next steps
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Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Rebalancing lowers your portfolio risk and can increase your returns.
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