With the appointment of Jerome Powell as the next Chair of the United States Federal Reserve Board, Donald Trump has made perhaps the most important single decision of his presidency.

The 2017 mid-year SPIVA report on fund manager performance came out recently. And, while we can expect to see the media dwell on the negatives, there are some big positives in the data.

Having built some satisfaction that their retirement savings balance is sufficient, clients ask "How much can I afford to spend?"

Fodder kicks off with Tim Farrelly taking aim at the assertion that Australian banks have a huge vulnerability to a downturn in the residential property market. Yale's Stephen Roach then serves central banks a bouquet (for getting on with normalisation) and brickbat (for the time they're planning to take). Ellerston Capital's Brett Gillespie explains how not to lose money while QE winds down. Michael Furey asks whether you know the impacts of the risk characteristics of your multi-manager portfolios, and explains how to guard against overdiversification. And finally, we feature the top 10-rated Strategies Conference presentation by Fidelity International's Kate Howitt on the six characteristics of world class companies.

Fodder begins with a Forum Backgrounder on the interplay of organisation culture on investment performance and the potentially significant implications for active investment managers. Then, 2013 Nobel laureate Professor Robert Shiller explains why this year’s winner of the Nobel Memorial Prize in Economic Sciences, Richard Thaler, is a controversial choice (but one he welcomes). Professor Ron Bird reviews two recent papers exploring new ground on two long-established investment strategies – portfolio insurance and momentum investing. We feature the recent Strategies Conference presentation by Platinum’s Andrew Clifford on the dangers of index obsession. And we end with Invesco’s Stephen Anness on why truly contrarian investors focus on valuations.

Portfolio insurance - invented over 40 years ago - has experienced the renaissance that it very much deserves. Trend (momentum) investing dates back over 40 years, too - the success of which is traced back in this paper to over 100 years.

Fodder kicks off with Tim Farrelly taking aim at the assertion that Australian banks have a huge vulnerability to a downturn in the residential property market. Yale's Stephen Roach then serves central banks a bouquet (for getting on with normalisation) and brickbat (for the time they're planning to take). Ellerston Capital's Brett Gillespie explains how not to lose money while QE winds down. Michael Furey asks whether you know the impacts of the risk characteristics of your multi-manager portfolios, and explains how to guard against overdiversification. And finally, we feature the top 10-rated Strategies Conference presentation by Fidelity International's Kate Howitt on the six characteristics of world class companies.

Despite all the talk, the fact that Australian banks loan books are heavily concentrated in low risk residential mortgages should be a source of comfort, not fear.

The IMR Conference 2017 (28-29 September 2017) has been assessed and accredited by Portfolio Construction Forum for Forum CE hours. Delegates must confirm their attendance in order to receive CE acceditation.

This week, Fodder starts with Ruth Richardson's presentation from our recent Strategies Conference. Nouriel Roubini gives his take on why inflation has not picked up, despite global growth accelerating. Dr Bob Gay argues that the Fed is only a little behind the curve. Tim Farrelly takes aim at the belief that Australian investors should reduce their Aussie equity holdings and we end with Professor Ron Bird reviewing two "colourful" recent investment research papers.

This week, Fodder starts with Ruth Richardson's presentation from our recent Strategies Conference. Nouriel Roubini gives his take on why inflation has not picked up, despite global growth accelerating. Dr Bob Gay argues that the Fed is only a little behind the curve. Tim Farrelly takes aim at the belief that Australian investors should reduce their Aussie equity holdings and we end with Professor Ron Bird reviewing two "colourful" recent investment research papers.

Two recent studies provide evidence that issues unrelated to the fundamental operation of a firm impact their market valuation.

Many observers conclude that the Fed is behind the curve because a central bank supposedly should not persist with a negative real policy rate at full employment. That is correct - but the question remains "how much?"

The IMCA Conference (19/20 Sep 2017) has been assessed and accredited by Portfolio Construction Forum for Forum CE hours. Delegates must confirm their attendance in order to receive CE acceditation.

Since mid 2016, the global economy has been in a period of moderate expansion - yet inflation has not picked up. Why?

Simply observing the concentration inherent in the index and reducing Australian Equity weights is throwing the proverbial baby out with the bathwater. It’s nuts and you can clearly see it’s nuts.

The Conexus Absolute Returns Conference (14 September 2017) has been assessed and accredited by Portfolio Construction Forum for Forum CE hours. Delegates must confirm their attendance in order to receive CE acceditation.

The IMCA Seminar 7 2017 (12 & 14 Sep) has been assessed and accredited by PortfolioConstruction Forum for Forum CE hours. Delegates must attest their attendance in order to receive CE acceditation.

The Conexus Equities Summit (12 September 2017) has been assessed and accredited by Portfolio Construction Forum for Forum CE hours. Delegates must confirm their attendance in order to receive CE acceditation.