Our Forum Fodder NZ e-newsletter alerts Members to what's new on PortfolioConstruction.com.au and live progams. Brace yourself - this week's Fodder is a deluge, with all of the plenary presentations from Markets Summit 2014

If we're explaining a "norm" to clients that embeds a social proof, we should be using norms that show what is successful, not describing the commonality of failure!

In rapid-fire presentations, 18 experts from various parts of the world debated the biggest issue facing the financial world.

Our Forum Fodder e-newsletter alerts Members to what's new on PortfolioConstruction.com.au and live progams. In Fodder this week - Our backgrounder on UMP & Woody Brock's presentation from the PortfolioConstruction Forum Markets Summit 2014

Our Forum Fodder NZ e-newsletter alerts Members to what's new on PortfolioConstruction.com.au and live progams. In Fodder NZ this week -Our backgrounder on UMP and Woody Brock's presentation from Markets Summit 2014

In a new format for Markets Summit 2014, delegates took the role of CIO for the day, as the 18 strong presenter faculty made the case for their highest conviction insights.

Normal is not our experience - today's world is different from anything in the history of human capitalism. The Aquarium Theory of Investing is one way to gain perspective.

Our Markets Summit faculty debated two critical issues arising from Unconventional Monetary Policy; for the coming two to three years, to substantially overweight DM vs EM Equities in portfolios and substantially overweight Short vs Long Duration Bonds.

We must challenge common assumptions about the US and emerging markets to ensure we are focusing on the best routes to the right destination.

Emerging Markets were a focal point in 2013, repricing as US stimulus, commodity prices and China's boom subsided. In future, EM performance will depend on individual merit.

The US is the critical market of the global economy - and there are sign-posts that clearly suggest it is ready to surprise on the upside, with significant implications for portfolios.

A rise in US Treasury yields is likely to have a profound impact on benchmarks. Bonds should remain a critical component of portfolios, but a more active approach is necessary.

Think about bonds as an insurance policy for portfolios. With higher yields available, very cheap insurance is even better able to pay for hurdles facing portfolios.

To achieve the Great Escape, central banks must first complete the Great Unwind – the removal of ultra-easy monetary policies. So what is the roadmap for the Great Unwind?

Ultra-low interest rates and QE have offset the deflationary forces of debt deleveraging. The challenge policy makers face is when to withdraw the stimulus to avert inflation.

Breaking Unconventional Monetary Policy (B.U.M.P.) and it's impact on global financial stability is the key risk for the foreseeable future.

In a Great Escape world, ignoring the index and actively seeking growth investments regardless of size or weightings is more important than ever.

The ability to pick inflection points in markets as well as deploying TAA across credit will be the key ingredient going forward.

Short-term rates are likely to remain low for a prolonged period of time. Investors will still need to source yield, they'll simply have to be more creative to find it.

After a half decade of weakness, robust growth in the US and UK is setting the stage for unconventional monetary policies to be unwound.