|
G'day
This week we bring you a
really important piece from Michael Kitces (a member of our core faculty
and possibly the smartest person you'll ever meet) - if you only have
time for one article this week, make sure it's his piece on
why the most commonly used measure of manager outperformance is a
virtually useless and in fact pretty much guarantees you won't find
an active manager that outperforms. It's not heavy on quants - one of
Michael's great skills is making complex issues really easy to
understand.
Charles Gave of GaveKal fame then follows suit and shoots down
a common myth, proving that a
positive yield curve is no protection from recession and it's
possible the US will slip into recession
|
|
 |
next year. Mohammed El-Erian
warns not to expect the impossible from central banks. If you've been considering using target date
funds, make sure you read AQR's critique that argues
most target date funds have two shortcomings (that can be improved on).
Finally, we explain
why this year's Nobel Prize in Economic Sciences was such a big deal!
All the best for some great weekend learning - Graham
|
|
Not everything which can
be measured counts, and not everything which counts can be measured.
-
Albert Einstein
|
|
Perspectives -
latest |
|
 |
A lousy way to evaluate active managers
Failing to find outperformance amongst active managers may be more a
problem with the approach used to measure it, than a failure of active
management itself.
Michael Kitces, Pinnacle Advisory Group | Opinion
|
|
 |
Forget the yield curve - watch the Wicksellian Spread
If I only had a dollar for every time I read the US is safe from a
recession next year "since the yield curve is positively sloped."
Charles Gave, GaveKal | Opinion
|
|
 |
Understanding asset prices
Predictability of asset returns is one of the most important issues in
finance. This year's Nobel Prize in Economic Sciences was shared by
three pioneers in the field.
Angela Ashton, PortfolioConstruction Forum | Research
|
|
 |
The uncertain future of Central Bank supremacy
Advanced-country central banks are putting on the line their
independence and credibility. It's in no one's interest to see these
institutions come crashing down.
Mohamed El-Erian, PIMCO | Opinion
|
|
 |
Improving target-date funds
Target-date funds are one of the fastest-growing segments of the funds
industry. However, most have two shortcomings that can be improved.
AQR Capital Management | White
Paper
|
|
 |
Richard Haworth - Portfolio Construction
Great write Philip... It is, to me, half art half
science. The science part... we took the wrong turn around 70 years
ago with MPT. We "eat" the result of geometric returns not arithmetic
returns. Comment
|
|
Perspectives -
recently |
|
 |
Bubbles, bubbles everywhere
We've seen this movie before. Financial bubbles happen regularly - what
is extraordinary is how much bubbles all look alike. Why are we seeing
so many bubbles now?
John Mauldin, Mauldin
Economics | Opinion
|
|
|
How many monkeys does it take to find a successful strategy?
This recent article argues that some arguments used to validate
alternative forms of indexing have no mathematical basis and can be
proven false quite easily.
Angela Ashton, PortfolioConstruction Forum | Research
|
|
 |
Comparing apples with oranges
The
Australian equity market has lagged far behind the US this year. But the
S&P/ASX200 is actually ahead over the last 10 years and since the GFC
market lows.
Don Hamson, Plato Investment Management | Opinion
|
|
 |
Retirement monies - what to consider? What to do.
Baby boomer retirees need an investment approach that delivers both the
income they need and maintains the flexibility to meet their other
objectives too.
Aaron Minney, Challenger | Resources
|
|
 |
Is economics a science?
As one of the winners of this year's Nobel Memorial Prize in Economic
Sciences, I'm acutely aware of criticism of the prize by those claiming
economics is not a science.
Robert J. Shiller, Yale University | Opinion
|
|
|
Philip Carman - "Science" of portfolio construction?
I've been watching for some years this debate going back and forth but
try as some might (and they appear to be willing to go to the most
extraordinary lengths to this end) you can't make portfolio construction
into a science... Comment
|
|
Calendar of
live programs |
|
 |
Keep up to
date - follow us @PortfolioForum
There's no need to wait until
our weekly Forum Fodder email to know what's new with PortfolioConstruction Forum.
Just follow us on Twitter to hear as soon
as we release new articles on
PortfolioConstruction.com.au and
registration opens for our live programs.
|
