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Fodder leads with Mohamed El-Erian picking up where
Chris Watling left off a few weeks back - arguing
that current economic models and thinking are broken
and a new paradigm is needed. Ex Harvard faculty and
former finance minister of Chile,
Andrés Velasco,
explains why machine-driven trading is making
"irrational exuberance" worse. The impact of passive
investing on market behaviour is also examined in
two conflicting papers highlighted by UTS Professor
Ron Bird in his latest Research Review. In his
top-rated Finology Summit presentation,
Herman Brodie presents research
on trust and what really matters to investors when
they are choosing fund managers. Finally, Tim
Farrelly challenges us all to do a lot better in our
communications with end investors, and offers two
simple rules of thumb to help.
- All the best for another week's continuing
education - Graham
P.S. If you attended Markets Summit 2018 and/or
Finology Summit 2018 live,
your CE accreditation is now available in your
MyCE record. (And if you didn't attend, you
can still "attend" online and earn CE hours.) |
QUOTE OF THE WEEK...
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All men by nature desire to know. - Aristotle
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LATEST...
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Markets
Working toward the next
economic paradigm
It
should come as no surprise that enthusiasm for
economic and financial globalisation has faltered.
Building consensus around a revised unifying
paradigm will not be easy.
Mohamed El-Erian, Allianz |
More
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Markets
Rational irrational exuberance?
In my opinion, the asset-price volatility we have
been seeing has little or nothing to do with changes
in fundamentals. And the widespread use of
machine-driven trading is likely making all of this
worse.
Andrés Velasco |
More
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Investing
Research Review: Everything you need to know and a
bit more
In nine pages, this paper says all that needs to be
said on the ability of any of us to estimate the
true value of financial assets. The next two papers
produce conflicting findings on the impact of index
investing on markets.
Prof Ron Bird, UTS
| 1.00 CE |
More
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Finology
The trust mandate is how asset
managers win and keep clients
Trust – the belief that those to whom we are
vulnerable are both willing and able to act in our
interests – is the no.1 factor in the decision to
select and retain an asset manager.
Herman Brodie, Prospecta | 1.00 CE |
More
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Finology
Is it relevant? Is it
understandable? We can all do much better…
Too much of our communication with end investors is
either irrelevant, unintelligible to the average
investor - or worse still, both.
Tim Farrelly, farrelly's | 0.50 CE |
More
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RECENTLY...
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Markets
Cryptocurrencies are a new
epoch in monetary history
The Chinese authorities recognise the potential of
blockchain technology and are outpacing the US, in
the race to develop an "official" cryptocurrency. If
the Chinese experiment succeeds, we may witness the
start of a new epoch in monetary policy.
Niall Ferguson, Stanford University | 0.50 CE |
More
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Markets
Comments on financial market
turbulence
Was the recent market volatility predictable? Was
the volatility exogenous or endogenous in nature?
What lies ahead as regards inflation and interest
rates?
Dr Woody Brock, SED |
More
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Markets
Brace yourself for a global
inflation shock
A combination of factors is set to generate an
unexpected inflationary shock to the financial
markets, leading to significantly higher bond yields
and a recalibration of relative valuations.
Jonathan Pain, The Pain Report | 0.25 CE |
More
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Finology
Backgrounder: Finology
Finology knowledge and skills will substantially
enhances practitioners' ability to communicate with
clients, and to manage portfolios more effectively.
This Backgrounder seeks to foster greater
understanding and interest in the field of Finology.
Portfolio Construction Forum |
More
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Markets
Threat of a wages blow-out is real
With unemployment at 30-year lows in many countries,
practitioners should consider the possibility that
wage pressures may force policymakers to tighten
more aggressively, triggering substantial equity
market falls.
Brett Gillespie, Ellerston Capital |
More
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Markets
Things break
Every generation or so, things (in the economics
world) break. We're probably at or close to one of
those once-in-a-generation moments. Watching
monetary indicators is key.
Chris Watling, Longview Economics |
More
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Markets
Is the stock market loaded for bear?
We are moving ever closer to the date when payment
for today's recovery will fall due. Recent capital
market gyrations suggest that awareness of the
inevitable reckoning is already beginning to dawn.
Dambisa Moyo |
More
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Markets
Unwinding the great QE carry trade
Let's be absolutely clear - the recent plunge in
equity markets has almost nothing to do with
inflation or a changing of the guard at the Fed.
Dr Robert Gay, Fenwick Advisors |
More
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Markets
Finology and finding the higher purpose
While economics studies how humans allocate scarce
resources, and psychology studies the human mind and
behaviour, there is a gap at the intersection between
the two – an emerging new body of knowledge dubbed,
"Finology".
Michael Kitces |
More
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Markets | Investing
The impact of technology on economic growth
There are five areas where the early effects of
technological change on the world economy are
believed to be investible today.
JP Morgan Asset Management |
More
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