The farrelly's Dynamic Asset Allocation Handbook Australia (Dec 2020) has been assessed and accredited by Portfolio Construction Forum for Continuing Education (CE/CPD) hours. Subscribers must complete a CE Quiz to receive CE/CPD accreditation.

The farrelly's Dynamic Asset Allocation Handbook NZ (Dec 2020) has been assessed and accredited by Portfolio Construction Forum for Continuing Education (CE/CPD) hours. Subscribers must complete a CE Quiz to receive CE/CPD accreditation.

Beliefs interact with investors' biases and preferences to ultimately influence their behaviour. Two recent papers highlight the impact of individual investors' beliefs about the future and the impact on portfolio behaviour and composition, as well as market returns.

Relatively little is known about what greed is and does. These two papers highlight the importance of greed in economic behaviour, and to a greater chance of engaging in ethically questionable behaviour.

Culture explains much about how we think, feel, and behave. These two papers explore the influence of culture and cultural distance in a financial context.

The world today is an acceleration and escalation of the world that existed before Covid-19, rather than a whole new world. Broad, multidisciplinary thinking is essential.

In the past, ESG considerations were seen as a choice or a preference but, going forward, they are increasingly becoming a necessity in the evaluation of investment opportunities in a whole new world!

For investors needing more from their fixed income allocation, global convertible bonds offer a whole new world of opportunity.

Decarbonisation and data growth will dominate every aspect of our lives for decades to come. If your infrastructure manager isn’t leveraging off these themes then you need to find a new one.

We are at the threshold of an epic bull market buoyed by the emerging Buenos Aires Consensus and desensitisation to Covid-19. But beware, inflation will eventually re-emerge.

Incumbent investment frameworks such as Value, Shorting, Passive and Index Aware strategies are failing. Going forward, successful investors will need to be extremely selective when allocating capital.

The Covid-19 crisis has triggered a step change in policy, accelerated trends and transformed investment frameworks. Opportunities will arise out of dislocation – but a more regional view is required.

The tech-wreck of the early 2000s was ground zero for the birth of a succession of Australian technology companies that have disrupted markets and established themselves as global leaders.

On 3 November, US voters go to the polls. The presidency will be determined once again by 14 swing states and six of them really matter.

Post Covid-19, Australian company dividends were cut by 30% overall but it is still possible to achieve 5% cash yields with up to 2% franking credits from a well constructed portfolio.

Traditional business models will increasingly be challenged. To win, companies will need to spend for the future and investors will need to take a longer term view to define ‘value’.

Post GFC, inflation risk skewed to the downside with central banks fighting against disinflation and deflation – and the market is potentially under-pricing inflation risks going forward.

While it may not be a new approach, ESG investing creates risk-aware portfolios that are more likely to outperform over the long term.

The Covid-19 pandemic is accelerating pre-existing consumer trends. The new world winners will be those businesses which focus on culture and purpose, and which aspire to make a positive difference.

Understanding what has really changed in people's values as a result of Covid-19 and the influence of emotions will prepare us for the increasingly polarised economic, geopolitical, social and environmental new world order.