Forum Fodder | Friday 29 June 2018
Any fool can know. The point is to understand. - Albert Einstein
All the best for another week's continuing education!
- Graham

UPCOMING LIVE CE...

Philosophy | Markets | Strategies | Investing | Finology
Strategies Conference 2018 - "Future-proof portfolios?"
Portfolio construction is an exercise in long-term thinking, seeking to meet the distant future financial needs of individuals. Strategies Conference 2018 will facilitate debate on a selection of contemporary and emerging portfolio construction strategies, with particular emphasis on the challenges of building future-proof portfolios.
22-23 August 2018 | Register now!

Finology
Webinar: Which of your clients will cheat on their savings? Inside your clients' time and spending preferences
When to retire? How much to save? It’s where clients often show the greatest "say-do" gap. Professor Shachar Kariv will show how simple decision games can reveal insights about your client's true time preferences, their willpower and their likelihood to stick to spending and savings plans.
12pm-1pm AEST 3 July 2018 | Register now!

LATEST ONLINE CE...

Markets
When politics trumps economics
Trump and team continue to flaunt virtually every principle of conventional economics. A trade war may well be an early skirmish in a much tougher battle, during which economics ultimately trumps Trump.
Stephen Roach, Yale University | More

Strategies | Investing
Passive investing - reshaping the investment landscape
Game changer or new danger? The rise of passive funds throughout this decade is recalibrating the traditional core-satellite portfolio model.
Professor Amin Rajan, CREATE-Research | More

Investing
Undiscovered Fund: A unique way to access emerging markets
A fundamentally driven and benchmark unaware exposure to smaller companies within the emerging markets sector, this fund represents a unique way for investors to access emerging markets.
Zenith Investment Partners | 1.00 CE | More

Markets
As we approach peak growth, gear down risk allocation
The global economy is approaching peak growth and investors should prepare for increasing left tail risks. With higher rates than 12 months ago, this may be an opportune time to increase allocation to bonds as an insurance policy.
Rob Mead, PIMCO | 0.50 CE | More

Markets
China’s Belt and Road Initiative is less than meets the eye
China’s Belt and Road initiative is expected to reshape the global economic landscape. However, the plan is poorly understood. It may generate political "returns" but opportunities for investors will be limited.
Alex Wolf, Aberdeen Standard Investments | 0.25 CE | More

Is this about funding sources more than quantities?
How would the data in Figure 1 look if we added in bank loans? In other words, how much of this growth is due to a switch from of funding sources as opposed to growth in borrowing?
Tim Farrelly | More

RECENT ONLINE CE...

Markets
Are we in a corporate debt bubble?
Since the GFC, the value of non-financial companies' outstanding bonds has nearly tripled. While a correction seems likely, the broad shift toward bond financing is actually a welcome development.
Susan Lund, McKinsey & Company | 1 comment | More

Markets
Don't write off America
To paraphrase Mark Twain, reports of America’s retreat are greatly exaggerated. Even if China can sort out its long-term demographic problems, other big challenges loom.
Tom Switzer, The Centre for Independent Studies | More

Strategies | Investing
A few investment selection faux pas
Over the years, I've seen countless portfolios. Virtually all have had a pre-defined asset allocation aligned to a risk profile. But occasionally, that's where the alignment ended.
Michael Furey, Delta Research & Advisory | More

Strategies
Most retirees need to eat capital
There is often confusion about income in retirement. In most cases, some income measures won't give retirees enough to spend, resulting in a lower standard of living than they could be enjoying..
Aaron Minney, Challenger | More

Finology
Beware the trifecta of desire
Practitioners demand a trifecta from fund managers - performance, simplicity, connection. But many great investments are contrarian and uncomfortable.
Douglas Isles, Platinum Asset Management | 1.00 CE | More

Markets | Investing
Netflix will be the next dominant digital business
New means test rules for pooled lifetime income products, together with development of Comprehensive Income Products for Retirement (CIPRs), have the potential to radically alter Australians' views about retirement income products.
Nick Griffin, Munro Partners | More

QT - simple!
Tim is guilty of arriving at his preferred destination, on time and all set for the next journey...
Philip Carmen | More

Markets
Beware Quantitative Tightening!
Quantitative Tightening is jangling the nerves of investors around the world. It's unprecedented and no-one knows for sure exactly how it will play out. But all the evidence points to QT being a non-event.
Tim Farrelly, farrelly's | More

Markets
Can the Euro be saved?
The euro was supposed to bring shared prosperity, which would enhance solidarity and advance the goal of European integration. In fact, it has done just the opposite, slowing growth and sowing discord.
Joseph Stiglitz, Columbia University | More

Finology
Research Review: Biases in recommendations
Two recent academic papers focus on how advice provided to investors might be distorted. The first relates to the disposition effect; the second looks at the impact compensation on advice given.
Ron Bird, UTS | 1.00 CE | More

Markets
Italy, tariffs are sideshows – the US is the main story
With US unemployment running at just 3.8% (equal lowest rate since 1969), the Fed will have to hike rates four times this year, with the risk that bond yields go not just to 3.5% but somewhere well north.
Brett Gillespie, Ellerston Capital | More

A Contrary View?
There is no price too large for the EU to pay to maintain the status quo, that is, their own survival... We need more populism, not less...
Garry Harradence | More

From asset allocation to risk allocation
Good topic to cover… thinking about gaps between the asset allocation process and security selection process. Surprised there isn’t more analysis or discussion along these lines...
Peter Eichmann, Park Street Group | More

Thanks, Peter
...I'm a little surprised myself although there are numerous quant and large asset managers who do produce a fair amount of analysis and publication along the lines of both dimensions.
Michael Furey, Delta Research & Advisory | More

Markets
The old allure of new money
There are now nearly 2,000 cryptocurrencies, and millions of people worldwide are excited by them. As with past monetary innovations, a compelling story may not be enough.
Robert J. Shiller, Yale University | More

Strategies | Investing
Will longevity products now become attractive?
New means test rules for pooled lifetime income products, together with development of Comprehensive Income Products for Retirement (CIPRs), have the potential to radically alter Australians' views about retirement income products.
David Knox, Mercer | More

Finology
Successful practitioners are caring practitioners
"Nobody cares how much you know, until they know how much you care,” cautioned Theodore Roosevelt. This is especially true when risk is involved.
Herman Brodie, Prospecta Limited | 0.25 CE | More

Markets | Strategies
Cash is the alternative asset class
Many asset classes - such as real estate and infrastructure - face the same valuation headwinds as equities and bonds. Practitioners should consider using cash as the diversifier for multi-asset portfolios.
Sonja Laud, Fidelity International | More

Markets | Strategies
Markets creak as yields creep higher
Calm returned to global stock markets in May. But investors should not be lulled into a false sense of security. Equities and bonds face considerable headwinds as the Fed continues to tighten. This is not the time to be invested in overpriced assets.
Brett Gillespie, Ellerston Capital | More

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