Established in 2002, Strategies Conference has earned a reputation as THE portfolio construction strategies conference of the year. Back in 2020, Strategies Conference explored the idea that we were entering "a whole new world" due to Covid-19, and debated what that meant for building quality investor portfolios. Two years on, more major crises have unfolded, and the new global regime is coming into sharper focus. Times have changed! Strategies Conference 2022 will challenge and refresh your portfolio construction thinking, as we debate investment strategies to help you build better quality investor portfolios given the future ain't what it used to be!
Next week, the US BEA releases its advance estimate of second-quarter GDP growth. Brace yourself for headlines claiming that the US economy is in recession, and all market reactions that will trigger. But do not be surprised if you're told the opposite two months later.
The past 18 months has seen the biggest bond bear market in almost 50 years. In this Spotlight, we look at why bond prices have fallen so much, how this bear market compares with others, and what returns and volatility we are likely to see going ahead.
Harvard's Lawrence Summers was interviewed about inflation last month. His comments focused on a single entity - the Fed. But fighting the causes of today's higher inflation is simply not within the Fed's power.
These two papers relate to some interesting quirks of the finance industry. The first finds that the accuracy of currency forecasts is worse than could be achieved from random predictions. The second gives a different slant of the large increase in the size of the financial sector.
We may indeed be in for a shortish period of high inflation and low growth - but as to this leading to 1980s-style stagflation? It's nuts and you can clearly see it's nuts!
Established in 2002, Strategies Conference has earned a reputation as THE portfolio construction strategies conference of the year. Back in 2020, Strategies Conference explored the idea that we were entering "a whole new world" due to Covid-19, and debated what that meant for building quality investor portfolios. Two years on, more major crises have unfolded, and the new global regime that is coming into sharper focus. Times have changed! Strategies Conference 2022 will challenge and refresh your portfolio construction thinking, as we debate investment strategies to help you build better quality investor portfolios given the future ain't what it used to be!
Established in 2002, Strategies Conference is THE portfolio construction strategies conference of the year. Presented each August, the program features 50+ carefully selected leading investment thinkers who will challenge and refresh your portfolio construction thinking by debating contemporary and emerging portfolio construction strategies, for you to consider applying in practice to build better quality portfolios.
As policymakers begin to craft a new Bretton Woods, and seek to embed the values that liberal democracies want to uphold, practitioners must understand the implications for portfolios.
Jonathan Pain, Author and Publisher of The Pain Report, is a regular key note presenter at Portfolio Construction Forum's continuing education programs. Over the years, he has debuted new investment theses and challenged delegates about how to build better quality investor portfolios...
Simply put, the effort to fight inflation could easily crash the economy, the markets, or both. The historical evidence shows that a soft landing is highly improbable. A recession in the next two years is likely.
Since I addressed Markets Summit 2022 back on 23 February, arguing "The days of abnormal monetary policy are over", Russia's invasion of Ukraine has triggered a food and energy crisis while declining consumer sentiment and Chinese lockdowns provide headwinds to growth.
Since I addressed Markets Summit 2022 back on 23 February, arguing it was time for a new investing playbook, there has been a major repricing in financial assets. The adjustment has further to run.
Established in 2007, Portfolio Construction Forum Research Symposium explores contemporary investment research issues relevant to Practitioners who design, build and/or manage multi-asset, multi-manager portfolios. Presented in June and November each year, the program features academics from leading university business schools, independent consultants, and portfolio construction practitioners.
As of 6 May, the bond market expected US consumer price inflation to average 2.5% between five and 10 years from now. So why does Kenneth Rogoff of Harvard University argue "things are way out of control"?
Certified Investment Management Analyst (CIMA) is the peak, international technical portfolio construction certification program designed for investment management analysts - that is, those involved in any aspect of constructing multi-manager, mulit-asset portfolios, whether practitioner or advocate.
Gold has fascinated investors and analysts for decades. But it is a poor hedge against inflation over meaningful time horizons, and it is close to its highest real price in 800 years.
The risks of a global recession trifecta are rising by the day. I am not sure politicians and policymakers are up to the task they may soon confront.
The predictable downward revision cycle for the global economic outlook has officially begun. The revision by the IMF, largely in response to the war in Ukraine, is a big one...
Despite astonishingly good returns during their limited history, there are too many uncertainties around crypto-currencies to consider them an investable asset.
Inflation's return marks a tipping point. A lot of wishful thinking will have to be abandoned, starting with the idea that governments can borrow or print as much money as they need to spray at every problem.
As inflation fears increase, we are seeing property and infrastructure fund managers saying their favourite asset class is a wonderful inflation hedge. There is more than a grain of truth here, but it is only half of the story.
The global economy has suffered two large negative supply-side shocks - first from the Covid-19 pandemic and now from Russian President Vladimir Putin's invasion of Ukraine - exacerbating stagflationary conditions.
President Zelensky of Ukraine finally called a spade a spade by designating the NATO allies as cowards. The winner in all this is President Zi of China, reinforcing his view that the West is spineless and in decline.
The farrelly's Dynamic Asset Allocation Handbook features editorial exploring investment strategy "hot topics", farrelly's long-term forecasts for asset classes, a detailed review of the long-term forecasts for an individual asset class (rotating across asset classes each quarter) and three asset allocation models to assist with implementation...
The farrelly's Dynamic Asset Allocation Handbook features editorial exploring investment strategy "hot topics", farrelly's long-term forecasts for asset classes, a detailed review of the long-term forecasts for an individual asset class (rotating across asset classes each quarter) and three asset allocation models to assist with implementation...
Real US Treasury yields collapsed from 7% to -6% between 1981 and 2021, yet most people fail to understand why. Understanding changes in real rates is crucial to forecasting nominal interest rates, and the outlook for asset prices.
The unprecedented economic weapons that have been deployed against Russia will be unquestionably painful. But the risks must not be underplayed. When fully unleashed, sanctions, too, are weapons of mass destruction.
farrelly's Investment Strategy provides subscription and consulting tools and services to enable a dynamic, forward-looking approach to asset allocation, a key driver of quality portfolio construction and quality results for investors...
Welcome to the farrelly's Dynamic Asset Allocation Australian subscriber only area...
Welcome to the farrelly's Dynamic Asset Allocation New Zealand subscriber only area...
In 2022, emerging markets are poised to outperform the developed world, as Western policymakers tighten monetary policy and withdraw fiscal stimulus. Portfolios should be reallocated to those parts of the world that are beneficiaries of this macroeconomic backdrop.
The tendency to fight the last war stems from human nature. Recent events are most salient in shaping people's perceptions of how the world works. As central banks are now realising, a longer-term historical perspective offers wisdom derived from a wider variety of circumstances.
With interest rates near historical lows and asset prices around all-time highs, practitioners are grappling with the defensive side of multi-asset portfolios. In team sports, offensive players typically get the glory, but it’s a robust defence that wins games. More than ever, practitioners need to ensure that the defensive side of multi-asset portfolios is match fit, if they are to meet the long-term investment objectives of clients. The best offence is a great defence!
With US inflation at a 40-year high, and the housing and labour markets red hot, the US Fed has finally taken a distinct and meaningful step forward on the path back to normal. Investors need to accept that the days of abnormal monetary policy are over.
Is there such a thing as normal? Steady states are becoming increasingly rare, the belief in 'reversion to the mean' is less relevant than ever and, ultimately, investors are better placed focusing long-term change.
Investing over the next several years is going to be unlike anything we've experienced in decades. It's time to go back to the drawing board to reassess the best approach to both defence and offence in a more volatile, changing market.
Unlike the annexation of Crimea in 2014, the 2022 Russia-Ukraine crisis is occurring in an inflationary macro context. As in 2014, increasing exposures to wheat and gold to hedge against the risk of higher inflation is a strategy that should perform strongly.
As we shift to a bipolar or tripolar world, in which the US and China decouple more rapidly, and Europe lives somewhere in the middle, we must seek to understand the implications for asset classes, sectors and geographies.
Investors shouldn't overlook the potential benefits of focusing on companies in the energy sector. It looks like what's "old" will be “new” again.
Over the long-term, dividend growth and dividend yield are the dominant sources of long-term return. Valuation's importance recedes over time. Sustainable dividend growth companies appear to play defence well.
In a world of rising yields, fixed income investors must know that what's worked in the past might not work going forward. A braver and broader approach is required, by going on the offensive in fixed income.
All the indicia of a colossal equities bubble are in place. But there is a lot to own for the next five years if you are prepared to go where the crowd is thinnest, allowing you to be on offense as you defend your clients' portfolios.
Investors may be facing a regime shift in markets that changes the traditional relationship between growth and defensive allocations. In a low conviction world, an allocation to a blend of public and private credit makes sense.
Global microcaps offer investors an unparalleled opportunity to invest in economic or market recoveries. Global microcaps' asymmetry around large market events provides investors with a powerful offence that is a great portfolio defence.
The game has changed - the 2010s is the wrong analogue for the 2020s. DIG in for an important era, when stakeholder capitalism displaces shareholder capitalism and becomes the main route to boosting shareholder value.
The next decade of decarbonisation is the decade of opportunity to de-risk portfolios and identify green investments. Climate change risk factors are changing asset valuations. Key to success is the need for portfolios to account for climate change risk or risk being obsolete.
Rising interest rates will create casualties and collateral damage in asset prices, but will bring back market discipline, requiring a rethink of what "defensive" even means.
In achieving longer term objectives, climate change demands both a defensive strategy to mitigate longer term risks and an offensive, tactical, approach to capitalising on opportunities.
A great attack scores points, but defence wins premierships. The same principal applies to investment portfolios. By making private debt the centre of a defensive strategy, investors can win in all conditions.
Inflection points in inflation, interest rates and the large-scale monetary distortion of recent decades suggest the future will not repeat the same playbook as recent decades.
A new market regime demands a change to the art of portfolio construction. The return of inflation volatility represents the most challenging and significant paradigm shift in decades.
Many expect that the end of the pandemic, reopening of economies, tight labour markets and excess consumer savings will push markets higher. Proceed with caution, the best offence is a great defence.
Record low interest rates have fundamentally changed the playbook for income investors. With banks withdrawing from the CRE debt market, other lenders have greater opportunity.
Although traditional barriers to participation in PE are fading, PE remains on the bench for many individual investors. With an end to easy value creation and challenging conditions ahead, don't miss out on PE outperformance in 2022.
Our diverse panel of experts debated which of the high conviction propositions they heard during Markets Summit 2022 resonated most strongly, and which they disagreed with most - and the portfolio construction implications.
Established in 2009, Markets Summit is THE investment markets scene setter of the year. The program is designed and curated by our specialist, experienced and independent team and features a Faculty of 20+ leading investment thinkers - geopolitical specialists, economists, market/asset class experts, and investment strategists - from around the world. Each offers his/her best high conviction ideas on the drivers of and outlook for the markets (on a three- to five-year view) in the context of the program theme.
Established in 2009, Markets Summit is THE investment markets scene setter of the year. The program is designed and curated by our specialist, experienced and independent team and features a Faculty of 20+ leading investment thinkers - geopolitical specialists, economists, market/asset class experts, and investment strategists - from around the world. Each offers his/her best high conviction ideas on the drivers of and outlook for the markets (on a three- to five-year view) in the context of the program theme.
We have distilled the Markets Summit 2022 Faculty's high-conviction propositions into three key discussion threads, and analysed how these threads relate to the key take-outs from Markets Summit 2021. By considering the discussion threads within the context of the program theme, you will be better able to decide whether you agree or disagree with each proposition, and to decide your key take-outs, and which of the propositions will investigate further after the live program.
Established in 2009, Portfolio Construction Forum Markets Summit is THE investment markets scene setter of the year. With interest rates near historical lows and asset prices around all-time highs, practitioners are grappling with the defensive side of multi-asset portfolios. Downside protection is essential in such an uncertain environment. Arguably, the best offence is a great defence! Markets Summit will help you better understand the key drivers of and outlook for the markets, and the opportunities and risks ahead on a three- to five-year view, to aid your search for return and to help them build better quality investor portfolios.
The past half-century brought about a world that's globalised, centralised, and stratified. Now, the pendulum is swinging the other way. Everywhere, a new economic order is taking shape as we enter an era of more inclusive and sustainable localisation, bringing wealth back home. As we shift to a bipolar or tripolar world, practitioners must understand the implications for different asset classes, sectors and geographies.
Our Markets Summit program kicks off with a video retrospective of the key events of the prior year...
If everyone wants a free lunch, the bill eventually will be paid by those least able to afford it. Emerging-market economies have had to learn this the hard way. Developed countries may have to learn it again.
The investment community's word of 2020 was undoubtedly "unprecedented". "Transitory" is our submission for 2021. "Transition" may best encapsulate 2022.
2021 is a year that reminded me of the song "If You're Going Through Hell". In the spirit of productive thinking and consideration of potential futures, I offer you my 2022 predictions for the next five years.
2021 turned out to be a relatively positive year for economies and markets in most parts of the world. But investors are likely to remain on the edge of their seats for most of 2022.
As governments become accustomed to spending vast sums of money and workers regain their bargaining power, the short-term inflationary pressures attributed to Covid-19 will bleed into a longer period of higher inflation.
The hottest investment topic of the day is inflation and its possible impact on investment markets. In farrelly's view, it is a storm in a teacup. This sanguine view is very much an outworking of our core philosophy that the long-term is much easier to forecast than the short-term.
Fiscal stimulus will help boost US growth to its strongest levels in decades in 2022 and European economies are poised to rebound. However, inflationary pressures will persist. Portfolios will need assets that provide downside protection, as well as strategies to capitalise on the growth ahead.