VIDEO: Invest in Emerging Markets Stocks to Balance Your Portfolio

On any given day, investors see headlines proclaiming trade war risks, news of a global recession and stories of political turbulence abroad and at home. With all of that information, many choose to invest 70%-80% of their stock portfolios solely in U.S. equities. But in this episode of Matt McCall’s “Moneyline” podcast, he dispels those emerging markets stocks fears.

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McCall sits down with Cambria Investment Management CEO Meb Faber to talk about a few of Cambria’s exchange-traded funds. One, the Cambria Global Value ETF (BATS:GVAL), exists to directly counter those fears. Faber and McCall agree that investors should fight their “home country bias” to invest more in emerging market stocks.

According to Faber, the GVAL ETF is designed to give long-term exposure to some of the cheapest stock markets around the world.

For instance, countries like Russia and Greece are often associated with geopolitical and economic risk. But in the last few years, both markets are some of the highest performers in the world. So GVAL invests in 12 of the cheapest countries in the world, offering long-term investors a chance to reap turnaround successes.

Its top holdings currently include Corticeira Amorim (a Portuguese cork producer) and JBS (a Brazilian meat producer), It also holds Motor Oil Corinth Refineries (a Greek petroleum refiner and trader) and Gazprom Neft (a Russian oil producer).

McCall’s Podcast

McCall is an emerging-markets bull, but he’s also a cannabis stocks bull. In this episode, Faber also discusses the Cambria Cannabis ETF (BATS:TOKE). Beyond its pun-perfect name, it’s also the lowest-cost ETF in the cannabis space. TOKE’s top holdings aren’t surprising. The first three names are Aurora Cannabis (NYSE:ACB), Aphria (NYSE:APHA) and Canopy Growth (NYSE:CGC).

Going in deeper, Faber shares his thesis behind such a thematic ETF. Thinking back to the era of Prohibition, TOKE — as well as other cannabis stocks — exists at a parallel time in history. In the years after Prohibition, beer stocks soared at 20% growth per year. As investors wait for the U.S. to legalize marijuana, similar growth could be just on the horizon.

For more specifics on how to approach the TOKE ETF and other cannabis stocks, tune in to Matt McCall’s “Moneyline” podcast. Plus, you’ll learn more strategies for emerging markets investing.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. 

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