Cambria's Faber: 'The bull market in diversification has begun'

Meb Faber, chief executive and chief investment officer at Cambria Investments, says that large-cap domestic stocks have done so well that it has masked the rise of the rest of the investment ecosystem, but now that he expects recent good times to be balanced out by tougher stretches ahead for the Standard & Poor's 500, investors will want to take advantage of small-cap stocks, foreign stocks and more. That's good preparation for bear markets, and Faber makes it clear that downturns are a feature of the market, something that will come around again. Faber — who will return to Wednesday's show to discuss his new book, "Investing in America: The Rise of a 250-Year Bull Market" — says the trend remains "all signs green" for the market currently, but he says investors should be watching for change. Willie Delwiche, investment strategist at Hi Mount Research, says that the best environment for the stock market isn't falling rates, but rather rates that aren't moving. That positions the stock market to be in a "boring" and "quiet" environment where it can keep riding technicals which Delwiche describes as being "in pretty good shape" right now, with all 11 sectors of the S&P 500 above their long-term moving averages and more stocks making new highs than are making new lows. Those patterns are creating "strength beneath the surface" that he says can power the market higher. David Miller, co-founder of Catalyst Mutual Funds talks about insider buying as an indicator of corporate strength, monopoly and oligopoly positions as a way to play developing technologies and more in a wide-ranging Money Life Market Call.