Forum Fodder

Forum Fodder | Friday 12 April 2024

“When terrible events happen, we tend to overestimate the effect they will have on the global economy. Recent events, however, may very well be creating risks that could eclipse anything since World War II - we should not take them lightly.” - JPMorgan Chase Chair and CEO Jamie Dimon in his annual letter to shareholders (08 April 2024)

All the best for another week’s continuing education!
Graham
P.S. Mark your diary!. Join us for the 22nd annual Portfolio Construction Strategies Summit 2024, Wednesday & Thursday 21-22 August, at our live studio in Sydney, as part of a group at a live site, or via live stream. Early Bird registration opens soon! Meanwhile, watch the highlights from past programs

Markets

China confronts the middle-income trap
At this year’s China Development Forum - the highest-level annual meeting of senior Chinese policymakers and top CEOs, policymakers, and academics - discussion focused squarely on the risk of China falling into the middle-income trap.
Nouriel Roubini, Roubini Macro Associates | Read

Strategies | Markets | As seen at Markets Summit 2024

This time is different because every time is different
There’s much to learn from history, but every time is different when it comes to markets. The backdrop for investing will require investors to identify how the outlook today intersects with our experiences of the past and where it differs.
Ronald Temple, Lazard | 0.50 CE | Listen, Watch

Markets As seen at Markets Summit 2024

Investors are likely winners in a Biden-Trump rematch
Second term presidents tend to be more ideologically aggressive, since they are freed from the need to face voters again. Investors globally need to think through the implications of a second term for either candidate.
Libby Cantrill, PIMCO | 0.50 CE | Listen, Watch

Strategies | Markets | Investing

Thinking Differently: The unstoppable meets the immovable
With just about every equity index globally dominated by a handful of companies, indexed investors might soon discover they are overweight future failure.
Wayne Fitzgibbon, CAS Market Insights | Read

Investing | Finology | Philosophy

Bird’s Eye View: Investment mandates for good or bad
In 1990, Towers Perrin started spruiking the modern-day investment mandate. I must admit the concept of making investment managers far more accountable seemed rather good. Unfortunately, it most likely left clients worse off.
Ron Bird, ANU & Portfolio Construction Forum | Read

Strategies

It’s a choice of asset allocation versus alpha allocation…
Thanks Ron, it really is a myth that needs to be busted! It’s also interesting to see why you think it was circulated originally… David Toohey, Assetly | Read

Finology | Philosophy

On The Hunt: Ethical behaviour profiling
On the Hunt is a monthly lecture series focused on the human factors in investment portfolio construction, including the ethical implications. It will help you better identify and understand how investing biases, beliefs and behaviours impact portfolio construction practices - and therefore, investment outcomes - to help you build better quality investor portfolios.
Katherine Hunt, Ardentura Consulting | 1.00 CE (Ethics) | Read, Watch

Finology | Philosophy

Behavioural Finance: Investment decision-making short course
Led by behavioural finance expert, Herman Brodie, this online, on-demand course completed at your own pace 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

Trump and the global economic risk picture
We have entered a period of intensifying geopolitical rivalries and conflicts. If Donald Trump wins the US presidential election in November, the world will be even further destabilised.
Nouriel Roubini, Roubini Macro Associates | Read

Strategies | Markets

Crockpot: A good investment process needs to consider geopolitics
By all means, discuss geopolitical events and the likely investment implications. But you should then completely ignore those discussions and consciously exclude geopolitics from your investment decision-making process.
Tim Farrelly, farrelly’s Investment Strategy | Read

Strategies | Markets | Investing | Finology | Philosophy

Ultra-low rates are history - portfolios need more bonds
We are in an investment environment like that of the pre-GFC period. Bonds will offer higher levels of both income and diversification, within a multi-asset portfolio.
Chris Iggo, AXA Investment Managers | 0.25 CE | Listen, Watch

Markets

Let go of the past, we must think differently about markets
Much of current economic and markets thinking is rooted in the post-GFC era. Practitioners need to let go of that history and embrace the fact that four trends are fundamentally changing the long-term outlook for markets.
Wayne Fitzgibbon, CAS Market Insights | Read

Strategies | Markets

Global trade is being rewired, hailing a new investment regime
Contrary to wide opinion, globalisation is not “history” but is being reinvented. For investors, a less interconnected world has significant implications for corporate capital expenditure and country allocation.
Kevin Hebner, Epoch Investment Partners | 0.25 CE | Listen, Watch

Markets

Disappointing
I am concerned by this … pretty much because I agree with you! All fair and reasonable forecasts.
Michael Furey, Delta Research & Advisory | Read

Markets

Where will the global economy land in 2024?
Around this time a year ago, about 85% of economists and market analysts (including me) expected the US and global economy would suffer a recession. But the opposite mostly happened. One must approach any 2024 forecast with humility.
Nouriel Roubini, New York University & Roubini Macro Associates | Read

Strategies

Bird’s Eye View: The asset allocation myth
I was amazed several years ago to learn that the class I was teching believed that 90% of a fund’s returns are due to asset allocation. Having once been a major promoter of this myth, it is important I contribute to its eradication.
Ron Bird, ANU & Portfolio Construction Forum | Read

Strategies | Markets

Thinking Differently: When reality strikes back
Is there, as many predict, another financial crisis looming? The history of financial crises suggests that the preconditions are present. But this has been the case a few times since 2008. What is the reality?
Wayne Fitzgibbon, CAS Market Insights | Read

Finology

Research Review: An economics lens on ‘attention’
This paper provides a comprehensive review of the psychology of attention and its relationship to key economic concepts (utility, risk-taking, social preferences, and learning), and the emerging role of AI in the modern economy.
Rob Hamshar, Portfolio Construction Forum | 1.50 CE | Read

Investing

Design and Distribution Obligations (DDO) Report 762: Investment products
This report summarises the key observations from ASIC’s review of how issuers of investment products are meeting design and distribution obligations and areas for improvement.
Portfolio Construction Forum | 1.00 CE | Read

Forum CE Library - over 800 CE/CPD hours
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Earn CE/CPD hours

Forum CIMA CE Library - over 150 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 (AU)/FAAA, FMA etc).
Earn CIMA CE hours

Connect with us on LinkedIn
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.