Forum Fodder

Forum Fodder | Friday 21 June 2024

“History is littered with examples of higher leverage leading to asset bubbles, and then to full-blown economic crises… [Financial regulators] would do well to get ahead of the next speculative cycle while they still can.” - Dambisa Moyo, economist and member of the UK House of Lords (6 June 2024)

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

Markets

The moral hazard of lower interest rates
Capital markets believe that interest rates are indeed on a downward path. Regulators would do well to get ahead of the next speculative cycle while they still can.
Dambisa Moyo, Versaca Investments | Read

Strategies | Markets

Crockpot: Bonds are no longer negatively correlated with equities
Many commentators have noticed the positive correlation between bonds and equities over the past few years and announced the end of bonds as a useful diversifier - often claiming “The 60/40 portfolio is dead, long live alternatives!”.
Tim Farrelly, farrelly’s Investment Strategy | Read

Markets | Investing | Finology | Philosophy

Thinking Differently: Chris Joye
With Australian insolvencies at a 25-year high and corporate debt defaults rising globally, many investors are hoping that central banks will significantly reduce interest rates. But Coolabah Capital’s Chris Joye thinks differently.
Wayne Fitzgibbon, Thinking Differently | Listen, Watch

Markets

Supply chains find a way – resilience amid natural disasters
Investors must pay close attention to emergent supply chain disruption events, including those caused by mother nature. Four real-world examples reveal both exposure and impact of weather-related disruptions.
Chris Rogers, S&P Global | 0.25 CE | Read

Strategies | Philosophy Editor’s Pick!

If you do anything, embrace scenario planning
The primary criticism directed at those who think about the future is that it’s an act of futility. But thinking about how the future may unfold has proven to be a useful way to make decisions amidst radical uncertainty.
Vikram Mansharamani, Portfolio Construction Forum | 0.25 CE | Read, Listen, Watch

Markets

Inside the Club Thinking
With all due respect to Prof. Rogoff, the problem is not the lack of full “independence”, nor the use of flawed New Keynesian models, but far too much New Keynesian thinking…
Wayne Fitzgibbon, Thinking Differently | Read

Strategies | Markets | Investing | Philosophy

Short Course: Mastering private debt investing
Examining the unique characteristics that make private debt a compelling investment. Private debt has grown in popularity as an alternative source of debt financing, with the asset class tripling in size since 2008. Curated and produced by Portfolio Construction Forum, and led by private debt investing subject matter expert, Andrew Lockhart, this self-paced, two-hour online short course equips you with the expertise to navigate private debt investment confidently across diverse market conditions.
Metrics & Portfolio Construction Forum | 2.00 CE | Enrol

Finology | Philosophy | ** Premium **

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) | Premium | Enrol

Finology | Philosophy | ** Premium **

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

Central banks’ new-old inflationary bias
Listening to central bankers, one would think the recent bout of high inflation was merely an excusable post-pandemic forecasting error made under extreme uncertainty. But this presumes a level of central-bank independence that is simply unrealistic.
Kenneth Rogoff, Harvard University | Read

Strategies

Guide to providing advice to wholesale clients
This Guide sets out a procedure to recommend financial products that are only available to Wholesale Clients including the method for classifying a client as a Wholesale Client and common misconceptions about providing advice to them.
Wildflower Capital | 0.50 CE | Read

Markets | As seen at Markets Summit 2024

Private debt can counter history
History shows investors should always expect the unexpected – which simply underscores the benefits of adding private debt to a portfolio.
Andrew Tremain, Metrics Credit Partners | 0.50 CE | Listen, Watch

Markets | As seen at Markets Summit 2024

Private Credit is a structural evolution, not risky business
Despite outpacing traditional fixed income and even exceeding long-run equity returns, some commentators argue that Private Credit represents emerging systemic risk. That is a fundamental misunderstanding.
Frank Danieli, MA Financial Group | 0.50 CE | Listen, Watch

Finology

Research Review: Financial nudging and financial mindfulness
It is well-established that investors and service providers should take human behaviour into account when making financial decisions. These papers look at how two techniques drawn from psychology - financial nudging and financial mindfulness - can influence investor behaviour.
Ron Bird, Australian National University & Portfolio Construction Forum | 1.50 CE | Read

Markets

The myth of central bank independence
If governments are to be held responsible for investment and unemployment, they must control monetary policy. And, while central banks strive to maintain the appearance of independence, they often do what governments want.
Robert Skidelsky, Warwick University | Read

Markets

Decarbonisation happens regardless of Trump
Equity investors should set aside their fears of a second Trump presidency and focus instead on the structural opportunities presented by decarbonisation.
Mike Harut, Munro Partners | Listen, Watch

Markets | As seen at Markets Summit 2024

GREITs - not drowning, waving!
For the last two decades, private equity has consistently outperformed the public market, through market cycles and with less volatility. In 2023, private equity continued to show superior returns in the mid-market. Looking forward, the outlook for is stronger.
Andrew Parsons, Resolution Capital | 0.50 CE | Listen, Watch

Markets | As seen at Markets Summit 2024

Private equity outperforms, with less volatility
Global REITs have been overwhelmed by the rapid rise in interest rates, headlines about the demise of the office, and concerns over bank lending to commercial real estate. However, history is not repeating. The industry is in strong shape.
Justin England, Five V Capital | 0.50 CE | Listen, Watch

Finology | Ethics hours!

Research Review: Moral luck and investment
When evaluating investment performance, we generally acknowledge a fundamental distinction between skill and luck. This research paper looks at the concept of “moral luck” and finds that the outcome of an investment recommendation may shape others’ evaluations of both the skill and the morality of the investment adviser.
Rob Hamshar, Portfolio Construction Forum | 1.50 CE | Read

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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

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