Forum Fodder

Forum Fodder | Friday 07 October 2022

“I can remember previous moments of equal or even greater gravity for the world economy, but I cannot remember moments when there were as many…cross-currents as there are right now.” - Former US Treasury Secretary Larry Summers in an interview with the Financial Times (6 October 2022)

All the best for another week’s continuing education!
Graham
P.S. Check out our new online short course! Led by behavioural finance expert, Herman Brodie, the Behavioural Finance - Investment Decision-Making course will help you identify, analyse and evaluate the principal human preferences that influence decision-making in situations of uncertainty, so you can recognise and identify these preferences in others, to improve investment decision-making. Find out more
P.P.S. Mark your diary! Finology Summit 2022 “Debating biases, beliefs and behaviours in portfolios!” AEDT 8.30am-5.30pm Tue 06 Dec 2022. Join us in person at our live studio, a live site, or via live stream and earn 7-11 CE hrs. Registration opens next week.

Markets

The stagflationary debt crisis is here
Team Transitory clearly lost to Team Persistent in the inflation debate. And now there are early signs that the Great Moderation has given way to the Great Stagflation.
Nouriel Roubini, Roubini Macro Associates | Read

Markets

Q&A: US inflation will not fall back to 2% in the future
Inflation will not fall back to the pre-Covid 2% level that the US Federal Reserve wants. Two underlying structural changes will keep US inflation at about 4% in the future.
Dr Woody Brock, Strategic Economic Decisions | Watch, Listen

Markets | Strategies | Finology | Philosophy | Rated in the top 5 at Strategies Conference 2022

Portfolio construction strategies ain’t what they used to be!
Portfolio construction requires precarious navigation in an ever-changing world. Only when we adapt our skillsets and reframe our perspectives can we understand why things are happening and capture upcoming opportunities.
Tassos Stassopoulos, Trinetra Investment Management | 0.50 CE | Watch, Listen

Markets | Strategies | Philosophy | Rated in the top 10 at Strategies Conference 2022

Ignore the hype - GREITs are the investment for all seasons
The future ain’t what it used to be – that’s just noise. Listed Global REITs provide investors with a competitive return profile and diversification from equities, a compelling reason for allocations in portfolios.
Andrew Parsons, Resolution Capital | 0.50 CE | Watch, Listen

Strategies | Investing | Philosophy

Research Review: ESG investing and returns
The first of these two papers provides a comprehensive review of the several thousand papers written on ESG investing and investment performance, while the second looks at downside risk reduction.
Ron Bird, ANU & Portfolio Construction Forum | 2.00 CE | Read

Finology | Invitation to investment advisers

Complimentary self-assessment to benchmark your Client Care & Practice knowledge and skills
FASEA requires that financial advisers continually improve their client care and practice knowledge and skills - doing so makes obvious business sense, as well. Our new Finology Benchmarking Indices (FBI) self assessment tool helps you benchmark your investing biases, beliefs and behaviours versus peers, to further empower your “client care and practice” knowledge and skills. It’s complimentary to our members who give investment advice, while we continue to develop it.
Portfolio Construction Forum | 0.50 CE | Take the FBI self-assessment

Markets

Ruffer “Naming and taming the bear” Webinar
AEDT 5.45pm-6.30pm, Tue 11 October 2022
This webinar will look at the history of bear markets. Ruffer’s Jos North and Jasmine Yeo will explore the dynamics of market and investor behaviour in previous drawdowns, discuss what might be different this time around, and how we’re positioning portfolios.
Ruffer | 0.75 CE | Register now!

Philosophy | Finology

Finology Summit 2022 “Debating biases, beliefs and behaviours in portfolios!”
AEDT 8.30am-5.30pm Tue 06 Dec 2022
Established in 2016, Portfolio Construction Forum Finology Summit will help you better identify and understand how investing biases, beliefs and behaviours impact investment markets and portfolio construction practices - and therefore, investment outcomes - to help you build better quality investor portfolios.
Join us in person at our live studio, a live site, or via live stream | 7-11 CE | Mark Your Diary!

Markets

Pound foolishness
The British pound’s current gyrations point to some essential traits of currency markets. I am not sure what to make of Trussonomics.
Jim O’Neill | Read

Markets | Rated in the top 10 at Strategies Conference 2022

Globalisation’s future ain’t what it used to be!
As a new age of economic localisation reunites place and prosperity, practitioners must understand the implications for economies and societies - and for portfolio construction.
Rana Foroohar, Financial Times & CNN | 0.75 CE | Watch, Listen

Markets | Strategies | Rated in the top 10 at Strategies Conference 2022

Global corporate bonds should be a core allocation
The case for investment-grade corporate bonds replacing traditional sovereigns as a core allocation is strengthening with the income opportunity of this sub-asset class being the brightest it’s been in years.
Harry Phinney, Capital Group | 0.50 CE | Watch, Listen

Markets | Strategies | Rated in the top 10 at Strategies Conference 2022

The demise of the 60/40 means portfolios need trend
The seismic shift in economic, social and political themes means the future ain’t what it used to be – rendering the 60/40 portfolio inadequate.
Razvan Remsing, Aspect Capital | 0.50 CE | Read, Watch, Listen

Strategies | Finology

Research Review: Financial literacy and sequencing risk
With ever greater participation in superannuation, the accumulated sum held those entering retirement is often significant. But do older people have the cognitive ability and financial acumen to invest effectively?
Ron Bird, ANU & Portfolio Construction Forum | 2.00 CE | Read

Markets

Crockpot: It is a real stock-pickers market!
Such is the current narrative from active managers, and it may well be true. But, we should consider what is meant by “a stock-pickers market”. As for the concept that alpha grows on trees? It’s nuts and you can clearly see it’s nuts!
Tim Farrelly, farrelly’s Investment Strategy | Read

Philosophy | Finology

Rich Pickings: Alex Lennard
Rich Pickings explores the investment beliefs and philosophies of prominent professional investors. In this episode, I’m in conversation with Alex Lennard, Investment Director, Ruffer in London.
Graham Rich, Portfolio Construction Forum | Read, Watch, Listen

Markets | Strategies | Rated in the top 5 at Strategies Conference 2022

Geopolitical alpha ain’t where it used to be!
With geopolitical tensions on the rise, portfolio construction practitioners need a framework for making sense of the cacophony of geopolitical risks with the eye towards generating investment-relevant insights.
Marko Papic, Clocktower Group | 0.75 CE | Watch, Listen

Strategies | Investing | Rated in the top 5 at Strategies Conference 2022

Investors can achieve net-zero without giving up returns
Decarbonisation of the economy is the most important thematic of the next 30 years. The future ain’t what it used to be! Investors can achieve net-zero portfolios without compromising returns or increasing risk by using “green shorts”.
David Allen, Plato Investment Management | 0.50 CE | Watch, Listen

Markets | Rated in the top 5 at Strategies Conference 2022

Divergent inflation is an unprecedented setup for Asia
Post Covid, the inflation equation has changed between the East and the West. Diverging monetary policy settings and subsequent future economic growth favour the East in a world where the future ain’t what it used to be.
Andrew Swan, MAN GLG | 0.50 CE | Watch, Listen

Markets | Philosophy

Why can’t we all be rich?
It is past time that we shift our understanding of where the hinge of global economic history lies. I chose 1870 which is when the industrial research lab, the modern corporation, and full globalisation fell into place.
J. Bradford DeLong, University of California, Berkeley | Read

Markets | Strategies | As seen at Strategies Conference 2022

Australia’s future ain’t what it used to be!
The latest national census reveals that Australia is a nation determined to change direction. This will re-shape Australia’s economic and cultural landscape and influence the way that practitioners build multi-asset portfolios capable of meeting the long-term financial goals of Australians.
Bernard Salt, Allegra Spender and Tassos Stassopoulos | 0.75 CE | Watch, Listen

Philosophy | Finology | As seen at Finology Masterclass 2022

Quality portfolio construction requires a whole-brain approach
A whole-brain approach to portfolio construction requires a combination of knowledge, skill and expertise across the technical, analytical “fundamental” topics AND the human factors is essential for better quality portfolios.
Graham Rich and Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Watch, Listen

Finology | As seen at Finology Masterclass 2022

Investors are blind to what they do not want to see
The theory of cognitive dissonance was proposed in the 1930s by psychologist Leon Festinger. Understanding how cognitive dissonance can bias our investment decision making, and recognising when our behaviour is being driven by it, is vital.
Herman Brodie, Prospecta | 0.75 CE | Watch, Listen

Markets | Strategies | Investing | Finology | Philosophy

Research Review: The adaptive markets hypothesis
Despite widespread criticism of the efficient markets hypothesis, development of comparably broad alternatives has been lacking. One promising direction is the adaptive markets hypothesis which seeks apply the concepts and methods of ecology and evolutionary biology to financial market dynamics.
Rob Hamshar, Portfolio Construction Forum | 2.50 CE | Read

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Forum CIMA CE Library - over 125 CE hours
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We also let my LinkedIn network know as soon as we release new articles on portfolioconstructionforum.edu.au and when registration opens for our face-to-face CE programs. If LinkedIn is more your thing than Twitter, I’d welcome you connecting. And of course, I’d welcome having an offline direct conversation with you any time.