Alphabet soup, retirement income strategy, long-term returns
Fodder is back to being a mixed bag this week. Tim Farrelly kicks things off by questioning the accepted wisdom that QE, ZIRP, and NIRP have created investment distortions. Woody Brock then weighs in on Brexit and what it means for portfolios. Michael Kitces looks at the art and science of determining which retirement income strategy is best. We feature Bevan Graham's top-10 rated presentation from Symposium 2016 on what's important to long-term returns. And finally, Capital Group shows that who has won past US Presidential elections has had little impact on long-term US equity returns.
All the best for a great weekend's continuing education - Graham
P.S. Register now! PortfolioConstruction Forum Conference 2016 - The long and short of it (is the concept of long-term investing increasingly irrelevant?)

LATEST...

QE and ZIRP have introduced massive distortions?
QE has caused massive investment distortions. Ditto the ZIRP and NIRP policies of many central banks. Beware - the chickens are coming home to roost! It seems plausible, but...
Tim Farrelly, farrelly's | Opinion

A comment on BREXIT
The reality is that Brexit will hurt everyone involved more than was admitted during the campaign. Investors should expect heightened volatility, not only of stocks, but even of government bonds.
Dr Woody Brock, SED | Opinion

How do you measure which retirement income strategy is best?
The "best" retirement income strategy may be very different depending on whether you measure based on wealth, spending, probabilities of success, magnitudes of failure, or utility functions that weigh both the upside and downside risks.
Michael Kitces, Pinnacle Advisory Group | 0.50 CE | Research

Ride the cycle but structural weakness will come to matter more
Investors need to be wary that without much needed reform, structural weaknesses in many advanced and developing economies will be the ultimate determinant of longer-term returns.
Bevan Graham, AMP Capital NZ | 0.50 CE | 1 comment | Resources
* Rated in the top 10 presentations by Symposium 2016 delegates

US elections have been good for long-term investors
As the battle for the White House heats up, candidates are drawing attention to the challenges facing the nation. But whatever the outcome of the upcoming US Presidential election, we believe the impact on markets will be about the same.
Capital Group | Opinion

Member comments

Can advisers compete with Robo's?
In theory, no. Fortunately, Yogi Berra's law applies. "In theory, there is no difference between theory and practice. In practice, there is."
Tim Farrelly, farrelly's | Comment

Retirement resources that matter: Q+A
I'm not advocating that financial planners try to be marriage counselors, doctors or psychologists but there are benefits to understanding the whole client...
Dr Joanne Earl, Flinders University | Comment

Cashflows - in and out
Thanks Michael, interesting article. However, you are correct in that the challenge with many ideas and theories is the practical application...
Mark Carroll, Morvest Financial Planning | Comment

Rebalancing Software
Mark, the implementational challenges of rebalancing are something that - fortunately - are very conducive to technology solutions...
Michael Kitces, Pinnacle Advisory Group | Comment

RECENTLY...

Inside Brexit
I previously worked with the London think tank closely linked to David Cameron and his Tory modernisers. It was fascinating for me to watch Brexit from afar. Here's my take on what we've just witnessed.
Oliver Hartwich, The New Zealand Initiative | Opinion

The coming EXITentialist crisis
The Brexit referendum is a major break in the 70 years of European integration. What's next for the UK? Who is next to exit? What does this mean for broader global stability? And - most importantly - what are investment implications?
Marko Papic, BCA Research | White Paper

Brexit now and we will only have to Breturn
The lesson of history is that British isolationism is a trigger for continental disintegration. A vote for Brexit will mean Britain will only have to "Breturn" sooner or later, to sort out the ensuing mess.
Niall Ferguson, Harvard University | Opinion

Reforming the Referendum
The lesson from Brexit is clear - put questions to a popular vote only when there can be no misunderstanding about how much (or how little) is at stake. The Brexit referendum failed that test.
Christopher Granville, Trusted Sources | Opinion

How to identify retirement resources that matter
It's a sad fact that not everyone adjusts well to retirement. It's estimated that about one third of retirees have problems adapting after leaving full time work. So why do some people fail to adapt? A Dynamic Resource Model provides a potential solution.
Dr Joanne Earl, Flinders University | 1.00 CE | 2 comments | Resources
* Rated in the top 10 presentations by Symposium 2016 delegates

Member comments

Forward estimate versus static allocation
Michael, in past articles, you discuss the benefits of adjusting asset allocation based on forward asset class estimates of expected returns. How would this possibly (if it is possible) work with this more static allocation but dynamic re-balancing?
Stephen Farrell, Hogben Farrell Financial Planning | Comment

Blending rebalancing strategies
Stephen, I wouldn't view these as mutually exclusive...
Michael Kitces, Pinnacle Advisory Group | Comment

Europe still matters
Yes, Europe still matters. It is a shrinking part of the world in relative terms, but it is still highly developed, rich, and home to some of the biggest companies on the planet..
Oliver Hartwich, The New Zealand Initiative | Comment

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