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Geopolitical risk, fundamentals, tracking error &
infrastructure
This week,
Fodder features the five top rated presentations
from
PortfolioConstruction Forum Conference
2016, each arguing a high conviction thesis
around the theme, "The long and short of it (Is the
concept of long-term investing increasingly
irrelevant?)" BCA Research's Marko Papic argues
that while terrorism gets the headlines, China's
actions in the South Sea pose a far greater risk to
portfolios, and PIMCO's Libby Cantrill looks at the
likely impact of a Clinton or Trump presidency on
markets. MFS Asset Management's Jim Swanson explains
why focusing on fundamentals rather than
market dynamics brings long-term rewards. State
Street Global Advisors' Olivia Engel argues that
tracking error only encourages investors to focus
(wrongly) on short-term outcomes. And Magellan's
Gerald Stack presents the case for infrastructure
for reliable income, irrespective of short-term
crises.
All the best for a great weekend's continuing
education - Graham
P.S.
The Conference 2016 Resources Kit is now online
so you can "attend" and earn up to 17 CE hours
(and if you were at the live program, there are
still 16 sessions you can now "attend" and earn CE).
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LATEST... |
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Markets/Strategies
Geopolitical risk? Ignore terrorism, focus on East
Asia
Geopolitical tensions between China, the US, and
countries of South East Asia are growing. Most
investors dismiss the region as a risk. But we are
at a precipice of a left-tail risk event.
Marko Papic, BCA Research
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0.25
CE |
Resources
* Rated
in the top 5 presentations by Conference 2016
delegates
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Markets/Strategies
Unfavourable candidates can be favourable for the US
economy
There has never been a more divisive US election
season than the one we are witnessing right now.
While the rhetoric and opinion polls are captivating
on a weekly basis, the long game is what matters.
Libby Cantrill, PIMCO
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0.50
CE
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Resources
* Rated
in the top 5 presentations by Conference 2016
delegates
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Markets/Strategies
Headlines battle facts, but fundamentals will
prevail
As an investor, allowing yourself to be distracted
by quick interpretation of market dynamics will lead
to poor allocation decisions. Ultimately,
fundamentals will win out for long-term investors.
James Swanson, MFS Investment Management
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0.50
CE
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Resources
* Rated
in the top 5 presentations by Conference 2016
delegates
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Investing
Tracking error causes short termism
Tracking error constraints on active management
focus on short-term outcomes and don’t align with
most investor goals, which are longer term. So how
else can portfolios be designed?
Olivia Engel, State Street Global Advisors
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0.50
CE
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Resources
* Rated
in the top 5 presentations by Conference 2016
delegates
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Investing
Infrastructure provides reliable earnings
irrespective of crises
Provided investors define infrastructure in a
disciplined manner, investment in infrastructure
will continue to deliver investors reliable earnings
over time.
Gerald Stack, Magellan Asset Management
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0.50
CE
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Resources
* Rated
in the top 5 presentations by Conference 2016
delegates
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Philosophy/Markets/Strategy/Investing/Finology
Backgrounder: The long and short of it
Managing the fundamental friction between short-term
and long-term investing imperatives is a key
challenge when building portfolios.
PortfolioConstruction Forum
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White Paper
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Currency is the ultimate alternative
Central banks (and other event risks...elections,
wars, etc.) all do create volatility... and not just
in the currency markets!
Dori Levanoni, First Quadrant
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Comment
Long-term forecasting vs Short-term forecasting
While making the broad statement that long-term
investing is a fools paradise the discussion seems
centred on stock selection rather than the full
gamut of long-term investing. Moving away from stock
picking, other pieces of the investment puzzle
really do lend themselves to a long-term point of
view...
Tim Farrelly, farrelly's |
Comment
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RECENTLY... |
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Investing
The banks at risk of an Aldi moment - sell!
The latest reason offered as to why not to buy
Australia's major banks is that their margins could
be taken away by a well resourced disrupter. Should
we not own the banks, as a result?
Tim Farrelly, farrelly's |
Opinion
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Strategies
The failure to understand rebalancing
We've been drilled that rebalancing portfolios
results in improved returns and/or reduced risk. But
the benefits of rebalancing are far smaller than
we’ve been led to believe.
Michael Edesess, EDHEC-Risk Institute |
1 comment
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Opinion
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Markets/Investing
Long-term investing is a fool's paradise
A range of cognitive biases leads investors to
generally overestimate their skill. A long-term
investment strategy simply compounds this problem. A
long-short investment structure can improve
outcomes.
Tribeca Investment Partners
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1 comment
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White Paper
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Philosophy
Asset managers must adapt to serve their clients
Client needs are changing. And these changes will
challenge asset managers, especially as the industry
goes through consolidation.
Doug Hodge, PIMCO |
Opinion
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Philosophy/Markets/Strategy/Investing/Finology
Backgrounder: The long and short of it
Managing the fundamental friction between short-term
and long-term investing imperatives is a key
challenge when building portfolios.
PortfolioConstruction Forum
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White Paper
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Delta model
Michael's model is fantastic. We use it for
researching managers and explaining decisions to
clients...
Justin Hooper, Sentinel Wealth
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Comment
Measuring recessions
...Couldn't
agree more. Every time I drive in Sydney traffic I
wish we were targeting GDP per capita as our measure
of prosperity.
Tim Farrelly, farrelly's |
Comment
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