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Oct 7, 2022

Meb Faber, chief investment officer at Cambria Investments, says that with traditional safe havens not working/protecting against the current downturn, many investors are reaching the point where they can't take it any more, becoming more "emotional and crazy," and that it will get exponentially worse with every additional 10 percent decline -- which he believes might happen before the market can turn around. That kind of panicky behavior, Faber says, is that it keeps them from investing in the solid long-term values that he sees currently around the world. That said, investors might want to head for the cliff after hearing Avi Gilburt, founder of ElliottWave Trader, talking technicals on this show, as he expects the market to have a pop back to record high levels before it embarks on a bear market cycle that he expects to last at least seven years, but which he says could be the predominant trend for two decades. Gilburt says that if the market can't squeeze one more rally out of the long-running bullish cycle, it's a sign that the next wave has begun and that the market could get very ugly -- roughly cut in half from here -- during the downturn he foresees lasting roughly for the remainder of this decade. Also on the show, Robert Bush, director of closed-end products at Calamos Investments, discusses how convertible securities -- built to let investors have their cake and eat it too -- have been underperforming in current conditions, and, in the Market Call, John Barr of the Needham Growth and Needham Aggressive Growth funds discusses the benefits of buying "compounders" even in markets where growth is hard to come by.