Forum Fodder

Forum Fodder | Friday 31 March 2023

“Today, we are witnessing a potentially lethal interplay between…two sources of upheaval: a financial crisis, reflected in the failure of Silicon Valley Bank, and a geostrategic crisis, reflected in the deepening cold war between the United States and China.” - Stephen Roach, faculty member at Yale University and former chairman of Morgan Stanley Asia (24 March 2023)

All the best for another week’s continuing education!
Graham

Finology

Finology Summit 2023 - Uncertainty | Exploring human factors in portfolio construction
AEST 8.30am-5.30pm Wednesday 03 May 2023
Finology Summit explores the human factors – beliefs, behaviours and principles - in portfolio construction. The focus of this year’s program is “Uncertainty”. Designed and curated by our specialist, experienced and independent team, the program features an exceptional Faculty of experts from around the world, each offering a high conviction perspective on a facet of investment uncertainty and/or certainty. This year’s program includes: Adam Ferrier on how humans are hard wired to deal with uncertainty; Clare Flynn Levy on how to master our biases to improve our investment skills; Elise Payzan-Le Nestour, PhD, on how neurofinance insights can improve investor decision-making; and, Herman Brodie on how to overcome the heuristics that have us make poor investment “sell” decisions.
Join us in person at our live studio, a live site, or via live stream | 7-11 CE | Register now!

Markets

The coming doom loop
The basic principle of duration risk seems to have been lost on many bankers, fixed-income investors, and bank regulators. After being a non-factor for the last 15 years, the interest-rate sensitivity of deposits has returned to the fore.
Nouriel Roubini, Roubini Macro Associates | Read

Markets | Rated in the top 3 at Markets Summit 2023

Decade-high yields alone don’t make bonds attractive
Those constructing portfolios must understand the nuances of bond risk/return drivers and how bond market performance can be impacted by different macro scenarios. Opportunities abound.
Gopi Karunakaran, Ardea Investment Management | 0.50 CE | Listen, Watch

Markets | Rated in the top 5 at Markets Summit 2023

In an AI world, semiconductors are the new oil
Global demand for greater computing power continues to escalate, presenting an exciting silver lining of possibilities and investment potential.
Nick Griffin, Munro Partners | 0.50 CE | Listen, Watch

Markets | Rated in the top 5 at Markets Summit 2023

The tide is set to rise for emerging markets equities
After a lost decade, cyclical and structural headwinds are abating for emerging market equities, while profound secular changes are becoming tailwinds. But the path ahead will look very different to the past.
Tassos Stassopoulos, Trinetra Investment Management | 0.50 CE | Listen, Watch

Finology | Philosophy | As seen at Finology Summit 2021

Ethical decision making is not an oxymoron
Many assume there are two kinds of business decision makers - those who are ethical and those who are not. However, most of us are both.
Dafna Eylon, Eylon Associates | 1.00 CE | Listen, Watch

Finology | Philosophy

Behavioural Finance: Investment decision-making 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.
Herman Brodie | 8.00 CE | Enrol

Markets

Reimagining global integration
Speculation that the world is deglobalising misses the mark - global integration is evolving, not retreating, in the digital era. Our world has changed.
Olivia White and Jonathan Woetzel, McKinsey & Company | Read

Markets | Strategies | Rated in the top 3 at Markets Summit 2023

This time really IS different
Investors need to leverage the experience of past decades while also humbly contemplating an uncertain outlook. Compared to any post-WWII period, this time really is different!
Ronald Temple, Lazard Asset Management | 0.50 CE | Listen, Watch

Markets | Rated in the top 3 at Markets Summit 2023

It’s time to say goodbye to TINA
The pre-pandemic New Normal decade introduced investors to TINA - there is no alternative. With interest rates and bond yields having moved higher, it’s time to say goodbye to TINA because bonds are back.
Daniel Ivascyn, PIMCO | 0.50 CE | Listen, Watch

Finology | As seen at Finology Summit 2021

Helping clients decumulate responsibly promotes well-being
The mind-set that works so well when people are building their nest egg for retirement can damage their quality of life in retirement. We help clients accumulate responsibly - we can help them decumulate responsibly, too.
Meir Statman, Santa Clara University | 0.75 CE | Read, Listen, Watch

Finology | As seen at Finology Summit 2021

Simplicity wins in financial decision making
There are strong behavioural biases that attract investors to complex strategies. However, introducing complexity will, on average, diminish the odds of success and detract from returns.
Stephen Arnold, Aoris Investment Management | 0.50 CE | Listen, Watch

Markets

India at a crossroads
India is poised to become the world’s most important country in the medium term. Yet the model that has driven India’s growth now threatens to constrain it.
Nouriel Roubini, Roubini Macro Associates | Read

Markets | Strategies | Investing | As seen at Markets Summit 2023

Every VUCA cloud has a silver lining! Key takeouts
Our diverse panel of experts debated which of the high conviction propositions they heard during Markets Summit 2023 they most strongly agreed with and why, including identifying “silver linings” (investment opportunities not yet fully priced into the market) and which they disagreed with most and why - and the portfolio construction implications of both.
Jacob Mitchell, Katie Hudson, Richard Quin, Daniela Jaramillo, Tim Farrelly | 0.75 CE | Listen, Watch

Markets | Strategies

Markets Summit 2023 - Implementation Key Takeouts
There was plenty of food for thought and grist for the investment portfolio mill, coming out of the recent Markets Summit 2023 “Every VUCA cloud has a silver lining!”.
Jonathan Ramsay, InvestSense | Read, Listen, Watch

Finology | See more of Herman at Finology Summit 2023!

How finance got behavioural
Classical economists often incorporated human behaviour into their thinking. But in the 1960s and 1970s, homo economicus - the great rational agent of economic theory - was born. It was not until the 1990s that the link between human behaviour and economics began to be re-established.
Herman Brodie, Prospecta | 0.25 CE | Watch

Finology | See more of Adam at Finology Summit 2023!

The financial services industry has made money boring
The financial services industry has done the impossible and made money boring, opaque and difficult to understand. If we better understand the psychology of money, we can better help our clients.
Adam Ferrier, Thinkerbell | 0.50 CE | Listen, Watch

Markets

Sleepwalking toward accidental conflict
America, China, and Russia are collectively sleepwalking down a path of conflict escalation, carrying high-octane fuel that could be ignited all too easily. Just like 1914.
Stephen Roach, Yale University | Read

Markets | As seen at Markets Summit 2023

In every way, it is different this time
As the clouds of Volatility, Uncertainty, Complexity and Ambiguity continue to swirl, the silver lining is that we are on the road back to normal monetary policy settings, from abnormal, and a return to more rational asset prices. But we must be patient.
Jonathan Pain, The Pain Report | 0.50 CE | Listen, Watch

Markets | Strategies

Spotlight on High Yield Debt investments
This Spotlight highlights that High Yield Debt can be a very useful addition to most investors’ portfolios, producing returns that are close to those of Equities, but with lower risk.
Tim Farrelly, farrelly’s Investment Strategy | Read

Finology

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 | Listen, Watch

Finology

Research Review: Hindsight bias and investing
Hindsight can be a valuable source of learning. However, hindsight is undermined by a range of factors and hindsight bias clouds judgments in all areas of life - including investing.
Rob Hamshar, Portfolio Construction Forum | 2.00 CE | Read

Forum CE Library - over 700 CE/CPD hours
Complimentary for all Forum members, the Forum’s online on-demand CE Library offers over 660 CE/CPD hours of accredited learning resources, to help members meet the CE/CPD requirements of 20 governing bodies (regulators, associations, and institutes) including ASIC, APRA, Legislated (was FASEA), AFA, FAAA, FMA and CIMA^® CE/CPD requirements, to name a few.
Earn CE/CPD hours

Forum CIMA CE Library - over 140 CE hours
This subset of our full CE Library features just those learning resources that are accredited for CIMA CE hours, so CIMA certificants can more easily find learning resources to meet their recertification obligation (at the same time as meeting the CE/CPD requirements of other governing bodies e.g. ASIC, APRA, Legislated (was FASEA), FAAA, AFA, FMA, etc).
Earn CIMA CE hours

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We 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. And of course, I’d welcome having an offline direct conversation with you any time.