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Meb Faber points to the escalating competitive dynamics among top asset management firms.
He observes that prompting the number one asset manager to directly enter the market as a rival can backfire, calling it "karma in action" and suggesting it is worthy of a Harvard case study. Faber refers to recent actions where Vanguard faced a challenge after Altruist was acquired, following moves by Schwab and Fidelity that imposed ETF 'platform' fees. The observation highlights how strategic decisions among leading managers can quickly impact the competitive landscape.
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Faber has previously examined asset class performance in historical context. He noted that bonds outperformed stocks for most of the nineteenth century in historical data on returns. In earlier commentary, he shared Jim Grant's view that gold prices measure confidence in paper currencies managed by central banks.