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G'day
This week's Fodder has a very
practical tone. Tim Farrelly explains "three
really good reasons" why you should still buy fixed interest even
if bond rates
are going up, showing the difference in outcome of buying TDs at 4.6%
available now vs deferring for two years to take advantage of
(hopefully) higher rates.
Michael Kitces debunks the myth that saving 10% of income is a good
retirement planning strategy - offering instead a strategy of saving 50%
of every pay rise, resulting in far higher end balances and far earlier
retirement. GaveKal's Charles Gave explains the
investment implications of "Sunnis on the march", as he
describes it. And
Oliver Hartwich takes a pragmatic look at capitalism
in the wake of the GFC (recorded live at the recent Symposium NZ 2014
program). Finally, Zenith |
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Investment Partners highlights
an
"undiscovered fund" which provides a highly active international bond
exposure designed to maximise total returns regardless of markets.
All the best for a great weekend's learning -
Graham
P.S.
Woody Brock's "4
things that matter" video and paper from last week's Fodder drew a
lot of Member interest. If you haven't already, take a few minutes to watch/read
it.
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LATEST...
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Rates are going up - so don't buy fixed interest?
Everyone knows bond rates are going up - so why would you buy fixed
interest? Actually, there are three really good reasons.
Tim Farrelly, farrelly's | Opinion
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Sunnis on the march
The Islamist surge through central Iraq has the potential to upset the
plans of investors who've convinced themselves that volatility is in the
past.
Charles Gave, GaveKal | Opinion
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Don't save 10% of income (spend just 50% of every raise)
The staple of retirement planning - save a percentage of income - makes
it surprisingly difficult to ever reach retirement. The alternative is
much easier and more successful.
Michael Kitces, Pinnacle Advisory Group
| Opinion
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Capitalism - bruised but still champion
In the wake of the GFC, the public's belief in the free market has taken
a battering. But for all its flaws, capitalism remains the best way of
creating prosperity.
Oliver Hartwich, The New Zealand Initiative
| Resources
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Undiscovered Fund: Highly active international bond fund
A global fixed interest capability designed to maximise total returns
regardless of market conditions, that may be suitable as a specialist or
satellite allocation within a portfolio.
Zenith Investment Partners | Research
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Other good reads
5 brain flaws that make you a lousy investor
- a quick, very readable overview of the five most common behavioural
finance explanations of why the way our brains work can be detrimental
to making wise investment decisions. A good one to share with clients!
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RECENTLY...
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Four things that matter in 2014 and beyond
Here are some brief thoughts on four issues that matter a lot, in our
view. Two have been poorly discussed in the financial press, and the
other two have been ignored completely.
Dr Woody Brock, SED | Opinion
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Dare to be great – the challenge of being different
Investing differently gives no certainty of great results (increasing
the odds of being wrong as well as right). But it is necessary for great performance.
Dominic McCormick, Select Asset Management | Opinion
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An Uber bubble awaits
Possibly, last week's most important financial event was not US
payroll data, the ECB, or the rapprochement with Putin. It was the
pricing of Uber, at 60 times rumoured revenues.
Anatole Kaletsky, GaveKal | Opinion
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The 4% non-solution
Moving to a twenty-first-century currency system would make it far
simpler to move to a twenty-first-century central-banking regime as
well.
Kenneth Rogoff, Harvard University | Opinion
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Is regulation good or bad for investment markets?
Recorded at the recent Symposium 2014, this session examined the truth
as to whether regulation makes markets more efficient or causes markets
to produce lower returns.
Prof Robert MacCulloch, University of Auckland
| Resources
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Other good reads
Networks and hierarchies
- Niall Ferguson contends that for all the world’s states - democratic
and undemocratic alike - the new informational, commercial, and social
networks of the internet age pose a profound challenge, the scale of
which is only gradually becoming apparent.
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PLUS...
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Mark Your Diary:
PortfolioConstruction Forum Conference (19-21 Aug)
Since 2002, PortfolioConstruction Forum Conference has gained a
reputation as THE investment conference of the year. Presented in Sydney
each August, it is our flagship program - a jam-packed, marathon
three-day, 25-hour program featuring 40 intensive, objective,
interactive sessions and more than 50 carefully selected local and
international portfolio construction experts. It is a companion program
to the annual Markets Summit held in Sydney each February.
Preview the theme "Reconnecting the three Rs - Risk & Return (&
Relating)"
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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.
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