Mebane Faber: Small vs Large, Growth vs Value?

H/T Mebane Faber     Capital Markets Outlook Investors are faced with four primary issues in the near-term: 1) historically low bond yields, 2) the potential for a transition into a rising rate environment, 3) the potential for deteriorating corporate earnings, and 4) the possibility of much lower energy prices for a sustained period. ? The price of the U.S. stock market relative to ten-year average earnings has increased over the past year, remaining above its historical average (29.5x versus 21.6x). Small cap domestic stocks’ valuations remain expensive relative to large cap stocks. ? Developed international and emerging market stocks…