Forum Fodder

Forum Fodder | 25 October 2024

“Valuation levels have been a poor guide to subsequent returns for 15 years now… But it can’t be that how much you pay for stocks will never again matter to the long-term returns they provide. That would be crazy.” - Robert Armstrong, US financial commentator at the Financial Times (24 Oct 2024)

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

Markets

The rise of big government ruined capitalism - Ruchir Sharma
What went wrong with capitalism? According to Ruchir Sharma, progressives are right, in part, when they mock modern capitalism as “socialism for the rich.”
Tom Switzer, Centre for Independent Studies | Watch, Listen

Strategies | Investing | As seen at Strategies Summit 2024

Passive can beat active in private markets, too
Private Equity pooled returns have been attractive while also less volatile than investing in a single fund or fund-of-funds. Enabling investors to “buy the private market” would complement portfolios just like in public markets.
Edward Talmor-Gera, NewVest | 0.25 CE | Watch, Listen

Strategies | Markets | As seen at Strategies Summit 2024

Optimal portfolios need risk premia
An Alternative Risk Premia (ARP) approach to investing, rooted in academic research, can deliver more stable and resilient performance even in volatile market conditions.
Paul Fraynt, K2 Advisors | 0.50 CE | Watch, Listen

Strategies | Philosophy | As seen at Strategies Summit 2024

You need to combine multiple alts in your portfolios
It is essential that portfolios are exposed to different, uncorrelated alternative risk factors and capture a variety of available risk premia to maximise risk-adjusted returns.
Antonio Ferrer, LGT Capital Partners | 0.25 CE | Watch, Listen

Strategies | Finology

Research Review: AI in investment management and advice
At one extreme, the whole investment decision-making process could be turned over to AI - at the other, it can just be used in data collection. These two papers capture the challenges of integrating AI into funds management and financial advice processes.
Ron Bird, Portfolio Construction Forum | 2.00 CE | Watch, Listen

Markets | Finology | Philosophy

Thinking Differently: Markets - more than the sum of the parts
I’ve been trying to understand H Minsky’s Financial Instability Hypothesis… That stuff is denser than a neutron star. But everybody’s favourite Australian Economist (not to be confused with Austrian Economist), Dr Steve Keen, has been working on using Minsky’s model for “a new economics”…
Dacian Moses, Waterfall Way Associates | 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

Kamala Harris’s economic priorities
With polls suggesting that Kamala Harris has at least a 50% chance of winning next month’s US presidential election, questions about her economic-policy agenda have come to the fore.
Nouriel Roubini, Roubini Macro Associates | Read

Strategies | Investing | Philosophy

Research Spotlight: Brandywine Global Opportunistic Equity
This Research Spotlight focuses on the Brandywine Global Opportunistic Equity strategy, a benchmark unaware true value global equity strategy that has produced very strong alpha.
Portfolio Construction Forum | 0.50 CE | Watch, Listen

Markets | Finology | Philosophy

Thinking Differently: Markets - more than the sum of the parts
Read any book on Complexity Science and the first example of a Complex Adaptive System is the economy and financial markets. Complex systems exhibit “emergence” which means that the whole is always more than the sum of its parts.
Wayne Fitzgibbon, Thinking Differently | Read

Strategies | Markets | Investing | Philosophy | As seen at Strategies Summit 2024

Private markets should be used to replace public equities
In a higher interest rate regime, with a higher correlation between stocks and bonds, replacing public equities with private market investments makes sense.
Matthew Michelini, Apollo Global Management | 0.25 CE | Watch, Listen

Markets

Reshoring is not permanent - 4 countries that need to stay ahead
Manufacturing reshoring by global multinationals is key to economic development in frontier and emerging markets. Understanding the shifting dynamics can be critical to investment decision-making at both the country and sector level.
Chris Rogers, S&P Global | 0.25 CE | Read

Markets

Harris plays chess while Trump plays checkers
So far, financial markets have remained largely indifferent to the upcoming November US presidential election. In my view, the odds of a Democratic sweep are increasing, and investors would be wise to pay attention.
Kenneth Rogoff, Harvard University | Read

Markets | Investing

Crockpot: Inefficient markets - great for active equity managers
It seems plausible. A lack of research means inefficient pricing and lots of opportunities to find bargains, and inefficient markets are full of less skilled investors. Alpha is lying around just waiting to be collected.
Tim Farrelly, farrelly’s Investment Strategy | Read

Strategies | Markets | Investing | Finology | As seen at Strategies Summit 2024

Macro Matters! The whole is greater than the sum of its parts!
Powerful geopolitical, demographic, environmental, technological and sociological trends are reshaping our world, impacting investment risk and uncertainty and how best to design portfolios capable of improving the financial well-being of individuals
Macro Matters panel | 1.00 CE | Watch, Listen

Strategies | Markets | Investing | Finology | As seen at Strategies Summit 2024

Practitioners must consider all of the parts
Our diverse panel of experts identified their key takeouts from Strategies Summit 2024 and the portfolio construction implications.
Key Takeouts panel | 0.50 CE | Watch, Listen

Finology

Research Review: Algorithm aversion
The financial services industry has long embraced the potential of AI-based systems including robo-advice. These two papers review the psychological and relational dynamics that arise from “algorithm aversion”.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Forum CE Library - over 1,000 CE/CPD hours
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Forum CIMA CE Library - over 170 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

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