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Dr Woody
Brock leads this week with an exclusive 15-minute
video filmed when he visited us last month, in which
he debunks the myth that our living standards have
declined - in fact, real GDP growth is understated.
Berkeley Professor Eichengreen explains what "an
impatient [US] president, frustrated and hemmed in
on all sides" is likely to do. Michael Kitces argues
that every retirement income strategy needs to
address three key questions to satisfy our intrinsic
(illogical) "hierarchy of retirement needs". Will
Jackson covers demography specialist Richard
Jackson's insights on how ageing in the developed
world is increasing the risk of social upheaval in
the developing world. And, we bring you Ron Temple's
top five-rated presentation on why "the winds of
change" sweeping through the markets are stronger
than you think.
All the
best for another week's continuing education -
Graham
P.S.
Mark your diary!
PortfolioConstruction Forum Masterclass NZ - 22 June (Auckland)
- by invitation to senior portfolio construction
practitioners. |
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QUOTE OF THE WEEK... |
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"The function of education is to teach one to
think intensively and to think critically..."
Dr Martin Luther King, Jr |
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LATEST... |
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Markets
The myth of declining living standards
Contrary to popular belief,
western living standards have not declined in recent
decades. Rather, government statistics fail to
capture a key element of real GPD growth.
Dr Woody Brock, SED |
Opinion
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Markets
What's a president to do?
Trump promised a raft of sweeping economic-policy
changes - but has quickly discovered that the US
political system is designed to prevent rapid,
large-scale change. So what will he do?
Prof
Barry Eichengreen, University of California,
Berkeley |
Opinion
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Strategies | Finology
Behavioral biases and the hierarchy of retirement
needs
We mentally account for income and assets with an
intrinsic hierarchy of priorities - a "hierarchy of
retirement needs". So retirement income strategies
should answer three questions.
Michael Kitces, Nerd's Eye View |
Research
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Markets
Ageing will reshape the global order
Over the
next few decades, global ageing will reduce the economic power
and geopolitical influence of developed nations, and
increase the risk of social upheaval in the
developing world.
Will Jackson,
PortfolioConstruction Forum |
Opinion
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Markets
The winds of change are stronger than you think
Investors should question the assumption that
inflation and interest rates will be "lower for
longer". Instead, inflation could be
whipped into a storm by trade, monetary and border
policy.
Ron Temple, Lazard Asset Management
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Resources
* Rated
in the top 5 presentations by Markets Summit 2017
delegates
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Tearing up TPP
should be positive for Australia?
I am not sure that the TPP was more favourable to
the US than Australia. Australia has bilateral trade
agreements with our four major trading partners...
Stephen Halmarick, Colonial First State Global Asset
Management
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Comment
Author Response
Andrew... mmmm... I think I've started responding to your
comments about 10 different times so I guess that
means the answer isn't that simple...
Michael Furey,
Delta Research & Advisory
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Comment
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RECENTLY... |
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Markets | Strategies
The hunt for yield is over
Money velocity is accelerating in the US and UK, as
commercial banks rediscover their appetite for risk
and the two economies continue to normalise. The
shift has significant implications for asset
allocators.
Chris Watling, Longview Economics |
2 comments
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Opinion
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Markets
Rethinking productivity growth
In thinking about the future of growth, and the
opportunities that continued growth will open up for
all of humanity, we should reflect on how far we
have come.
J. Bradford DeLong, University of California
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Opinion
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Strategies
Negative gearing is responsible for high property
prices?
A more realistic view of the world is that price
appreciation drives negative gearing - not the other
way around. Abolish negative gearing and nothing
much happens.
Tim Farrelly, farrelly's
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Opinion
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Strategies | Investing
Four fundamental portfolio construction decisions
Delegates at the recent Markets Summit 2017 program were asked to convert the
Faculty's high conviction insights into
four fundamental portfolio construction decisions
- here are their views.
Will Jackson, PortfolioConstruction Forum |
Opinion
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Markets | Investing
Australian equities portfolios are vulnerable to
inflation
Bond-sensitive stocks now form a record 60% of the
ASX's market cap. Australian equity investors should
hold a greater proportion in real-asset stocks and
reduce exposure to artificially inflated financial
stocks.
Martin Conlon, Schroders
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Resources
* Rated
in the top 5 presentations by Markets Summit 2017
delegates
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Inaccurate expectations of the market
I
think of equity markets as indicators of future
economic growth expectations, and those expectations
will not be accurate all of the time...
Andrew Wilson, National Australia Bank
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Comment
Yes but do cash and conservative portfolios conserve
wealth?
Great main point that risk tolerance and risk
capacity aren't the same. Many risk questionnaires
mostly measure sensitivity to volatility. That is
certainly worth knowing...
Doug Turek,
Professional Wealth
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Comment
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