In Fodder this week - Inflation, Roach on China's resilience, market anomalies & irrationality, Farrelly on ASIC on hybrids

In Fodder this week - Inflation, Roach on China's resilience, market anomalies & irrationality, Farrelly on ASIC on hybrids

Recently, Fed Chair Janet Yellen expressed dismay that inflation has remained persistently below the Fed's target of 2%. Will low inflation derail the Fed's exit strategy?

Forecasters find it difficult to resist superimposing the outcomes in major crisis-battered developed economies on China. It has been the wrong approach in the past; it is wrong again today.

Two new studies provide widespread evidence of mispricings/irrationalities across world equity markets. One in particular provides valuable insight into managing risk in equity investing.

The IMCA Au Seminar 5 (11/12 Jul 2017) has been assessed and accredited by PortfolioConstruction Forum for Forum CE hours. Delegates must attest their attendance in order to receive CE acceditation.

In a low growth, low inflation, low interest rate and low yield environment, a cyclical economic upturn presents opportunities in asset classes such as equities and real estate

It's become conventional wisdom that under-performance is due to the irrational investment behavior of individuals. It's time to question whether conventional wisdom has even a scintilla of meaning.

Discretion in setting monetary policy has had a checkered history. Ironically, the debate on rules vs discretion is heating up just as the FOMC sets a course for unwinding its extraordinary policy measures.

We ignore history at great peril. The latest disappointment for inflation-targeting central banks is really not a surprise after all.

Analysis of 5 international stock markets shows no correlation between stock returns and the political party in power.

The IMCA Australia Seminar 4 2017 "Appointing Investment Managers (Operational Due Diligence)" has been assessed and accredited by PortfolioConstruction Forum for Forum CE hours. These can be used to help meet the CE/CPD requirements of 15 regulators, associations, institutes and designations – including ASIC RG104/105/146 requirements and CIMA certificants’ CE commitment. Delegates must attest their attendance in order to receive CE acceditation.

Masterclass NZ is a post-graduate extension program focused on contemporary issues that are fundamental to building better quality portfolios. The one-day program is comprised of five research-based, active learning sessions:

Fodder starts with Nouriel Roubini arguing that Trump's policies are a key risk to the nascent global pick up in economic activity. Dr Bob Gay explains why Fed officials believe they can engineer a graceful exit from their experiment with asset purchases. Invesco's Stephen Anness and Andy Hall have written a terrific paper on the art of contrarian thinking of all types. Prof Ron Bird reviews two new papers on factor investing And finally, we feature the top-10 rated presentation by PIMCO's Joachim Fels at Markets Summit 2017.

Literature from a variety of disciplines help highlight the qualities behind truly creative, contrarian thinking - qualities which can be applied to modern portfolio management.

Unlike other commonly used factors, very little research has been undertaken on the quality factor - which makes a newly released paper very interesting. Another new paper extends the usual momentum factor into "returns signal momentum".

In the next year, a more robust and persistent global recovery will depend largely on whether policymakers avoid mistakes that could derail it.

This week, Fodder kicks off with Berkeley economist, Professor Shachar Kariv, on the science of uncovering investors' true preferences. Harvard's Prof Hausmann then argues that emerging market bond funds should make people morally queasy. Bob Huebscher recaps the recent debate between Wharton's Jeremy Siegel and Yale's Robert Shiller about the outlook for equity returns. Rob Arnott argues that momentum and value are cheap, but low beta is well overpriced. And we finish with a white paper by AB on low vol investing in Australian Equities

This week, Fodder kicks off with Berkeley economist, Professor Shachar Kariv, on the science of uncovering investors' true preferences. Harvard's Prof Hausmann then argues that emerging market bond funds should make people morally queasy. Bob Huebscher recaps the recent debate between Wharton's Jeremy Siegel and Yale's Robert Shiller about the outlook for equity returns. Rob Arnott argues that momentum and value are cheap, but low beta is well overpriced. And we finish with a white paper by AB on low vol investing in Australian Equities

Wharton's Jeremy Siegel and Yale's Robert Shiller squared off in a recent presentation about the outlook for equity returns.