In our final Fodder for 2016 (next week we'll be in touch with some suggested CE for the summer break), Tim Farrelly explains -  the message doesn't seem to have got through to some - why hybrids are not equities. Hamish Douglass offers his take on our Summit 2017 theme, outlining two winds of change he's watching closely. Listen to Prof Niall Ferguson recap the events of 2016 and the implications for markets. India Avenue's Mugunthan Siva argues investors need to relook at why they have equities in portfolios. And SSGA's Thomas Poullaouec explains why diversification is a "free drink".
Finally, we end with a celebration of the life and times of the Forum's Security and Compliance Manager (aka office sausage), Schnitzel von Krumm. Many of our Members know him from our live programs or from visiting our office - and, of course, he made his stage debut earlier this year at Conference 2016 ("the long and short of it"). We're sad to advise all who knew him that SvK recently lost his struggle with illness. As a tribute, we've put a montage of a few memories together.
All the best for a great weekend's continuing education - Graham
P.S. Strong winds of change are blowing - what does it mean for the outlook for the markets and how we relate to investors? Register now for Summit 2017 (Feb 2017).

QUOTE OF THE WEEK...

"An investment in knowledge pays the best interest." - Ben Franklin

LATEST...

Markets/Strategies
Bank hybrids are not equities...
Another major licensee has reportedly fallen for the hybrid scare campaigns, insisting bank hybrids securities be treated as equities. The premise is hopelessly flawed.
Tim Farrelly, farrelly's | Opinion

Markets
The winds of change - two chapters ahead
I think of two winds of change. The first is a fundamental change in the direction of global monetary policy. The second is technology. For now, though, we really need to think about the first.
Hamish Douglass, Magellan Financial Group | Opinion

Markets
An incentives approach for NZ's new Prime Minister
Prime Minister English could differentiate his government by focusing on housing affordability to transform the lives of millions of New Zealanders.
Oliver Hartwich, The New Zealand Initiative | Opinion

Markets
Niall Ferguson - a busy year for historians
2016 was a bumper year for history. But actually, it's just history as normal, says historian Niall Ferguson. And neither the Trump election nor Brexit signals the end of globalisation.
Nathan Smith, National Business Review | Opinion

Strategies/Markets
Is swapping volatility risk for longevity risk the right strategy?
Given increasing longevity, it's important that retirees not ignore strategies that can generate long-term capital growth. In short, retirees need to re-examine the role of equities in their portfolio.
Mugunthan Siva, India Avenue Investment Management | Opinion

Strategies
No free lunch in investing - but are there free drinks?
When it comes to returns, it's true that there is no free lunch - for one person to win, another loses. But with risk, diversification offers "free drinks", albeit that the bar where these are served evolves over time because correlation is not static.
Thomas Poullaouec, State Street Global Advisors | Opinion

Pawspectives
The life and times of Schnitzel von Krumm
The Forum team recently said a sad goodbye to our beloved sausage dog, Schnitzel von Krumm. He was well known to those who attended our live programs or visited our office over the past decade. As a tribute, the team has put together this montage of a few memories.
Hannah Molyneux, PortfolioConstruction Forum | Montage

The relevance of the Ukraine to the Wehrmacht
When was Stalingrad in the Ukraine?
Robert Harrison | Comment

RECENTLY...

Philosophy
The "real" IOOF "scandal" 18 months on
Mid this year, ASIC concluded its enquiry into allegations of wrongdoing and criminal behaviour at IOOF, related mainly to the research team and its then head. The real "scandal" turned out to be about reckless and biased elements of the media (and politicians).
Dominic McCormick, DPM Financial Services | Opinion

Strategies
Using age banding to estimate spending in retirement
A growing body of research on the actual spending habits of retirees finds spending declines over time, implying retirees may not need to be saving as much to retire.
Michael Kitces, Pinnacle Advisory Group | 0.50 CE | Research

Markets
Bond market turmoil in a Trumpian economy
Many worry that "the new normal" may be over, that the peak of the bond market has been reached, and so forth. We agree in part with this new view and offer some pointers to help navigate the bond market shoals ahead.
Dr Woody Brock, SED | Opinion

Markets
US will maintain a thoughtful distance amid disorder
US scepticism on free-trade and defence agreements is rational in an unstable world, according to geopolitical forecaster and author, George Friedman.
Will Jackson, PortfolioConstruction Forum | Opinion

Markets
An end to the Mae West approach to monetary policy
Since the GFC, Central Banks have taken a Mae West approach to monetary accommodation. If a little is good, and more is better, then too much is just right. What happens when it ends?
Jason Thomas, The Carlyle Group | Opinion

Values and investing
Very interesting series. Should be an important part of every financial education program.
Peter Hecht | Comment

Great article Dom
The future is more uncertain than ever and the challenge right now is how to survive an environment with a wide range of possible outcomes, as you rightly point out...
Jerome Lander, ProCapital | Comment

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