Such is the current narrative from active managers, and it may well be true. But, we should consider what is meant by "a stock-pickers market". As for the concept that alpha grows on trees? It's nuts and you can clearly see it's nuts!
Rich Pickings explores the investment beliefs and philosophies of prominent professional investors. In this episode, I'm in conversation with Alex Lennard, Investment Director, Ruffer in London...
With geopolitical tensions on the rise, portfolio construction practitioners need a framework for making sense of the cacophony of geopolitical risks with the eye towards generating investment-relevant insights.
Post Covid, the inflation equation has changed between the East and the West. Diverging monetary policy settings and subsequent future economic growth favour the East in a world where the future ain't what it used to be.
Decarbonisation of the economy is the most important thematic of the next 30 years. The future ain't what it used to be! Investors can achieve net-zero portfolios without compromising returns or increasing risk by using "green shorts".
It is past time that we shift our understanding of where the hinge of global economic history lies. I chose 1870 which is when the industrial research lab, the modern corporation, and full globalisation fell into place.
The latest national census reveals that Australia is a nation determined to change direction. This will re-shape Australia's economic and cultural landscape and influence the way that practitioners build multi-asset portfolios capable of meeting the long-term financial goals of Australians.
A whole-brain approach to portfolio construction requires a combination of knowledge, skill and expertise across the technical, analytical "fundamental" topics AND the human factors is essential for better quality portfolios.
The theory of cognitive dissonance was proposed in the 1930s by psychologist Leon Festinger. Understanding how cognitive dissonance can bias our investment decision making, and recognising when our behaviour is being driven by it, is vital.
Despite widespread criticism of the efficient markets hypothesis, development of comparably broad alternatives has been lacking. One promising direction is the adaptive markets hypothesis which seeks apply the concepts and methods of ecology and evolutionary biology to financial market dynamics.
Next week, the US BEA releases its advance estimate of second-quarter GDP growth. Brace yourself for headlines claiming that the US economy is in recession, and all market reactions that will trigger. But do not be surprised if you're told the opposite two months later.
Harvard's Lawrence Summers was interviewed about inflation last month. His comments focused on a single entity - the Fed. But fighting the causes of today's higher inflation is simply not within the Fed's power.
The past 18 months has seen the biggest bond bear market in almost 50 years. In this Spotlight, we look at why bond prices have fallen so much, how this bear market compares with others, and what returns and volatility we are likely to see going ahead.
This Research Roundtable focused on the Aspect Capital Diversified Futures strategy, with senior practitioners deciding, after briefings, Q&A and debate, their individual rating for the strategy and whether to include it on a hypothetical APL and/or multi-manager portfolios. Afterwards, the meeting is truncated and published for on-demand viewing by all Forum members.
These two papers relate to some interesting quirks of the finance industry. The first finds that the accuracy of currency forecasts is worse than could be achieved from random predictions. The second gives a different slant of the large increase in the size of the financial sector.
What's new with our live and on-demand continuing education, accreditation and certification programs.
Highlight our upcoming live CE programs, and all of the complimentary on-demand CE-accredited resources published over recent months.
