DDO fundamentally changes how financial products are distributed to retail consumers, requiring issuers and distributors to have a consumer-centric approach to the design and distribution of products.
Description: Highlight our upcoming live CE programs, and all of the complimentary on-demand CE-accredited resources published over recent months.
What's new with our live and on-demand continuing education, accreditation and certification programs.
Key officials at the US Federal Reserve have finally acknowledged that they mischaracterised an inflationary surge that has proven larger and more persistent than they expected. The Fed must now follow up by doing two things quickly.
What's new with our live and on-demand continuing education, accreditation and certification programs.
The idea that duration is to be avoided at this stage of the cycle? It's bad economics, bad market timing, and bad risk management. It's nuts and you can clearly see it's nuts!
The 17 Sustainable Development Goals (SDGs) are vitally important to building a better world for all humanity. Using an SDG framework reduces portfolio risk while making a positive SDG impact.
What's new with our live and on-demand continuing education, accreditation and certification programs.
Unless economists recognise the existence of inescapable uncertainty, there can be no macroeconomic theory, only prudential responses to emergencies.
What's new with our live and on-demand continuing education, accreditation and certification programs.
US President Joe Biden faces a critical decision - whom to appoint as chair of the Federal Reserve, arguably the most powerful position in the global economy. He doesn't have to look far to find someone who has already shown her mettle.
What's new with our live and on-demand continuing education, accreditation and certification programs.
International organisations are currently plagued by allegations of powerful states wielding undue influence over outcomes. But their clout does not render multilateralism impossible.
What's new with our live and on-demand continuing education, accreditation and certification programs.
As we enter the final quarter of 2021, the din of market sceptics continues. The narrative has now broadened beyond peak economic and earnings growth, however, to include peak everything.
Just as banks needed to increase their equity buffers after 2008, we perhaps now need to step back from just-in-time production and redefine productivity in light of supply-chain risks.
Covid-19 is a situation in which an actual virus - as well as new narratives related to it and its associated consequences - began spreading at the same time, with major economic consequences.
What's new with our live and on-demand continuing education, accreditation and certification programs.
After initially and persistently misreading US inflation dynamics, more Fed officials are now starting to come to grips with the situation. The Fed would be well advised to catch up even faster.
The mind-set that works so well when people are building their nest egg for retirement can damage their quality of life in retirement. We help clients accumulate responsibly - we can help them decumulate responsibly, too.
When markets are exuberant, it is difficult to see - let alone act - against the hubris. When markets are down in the dumps, it is difficult to see past the misery. A reductive macro-economic framework may help.
Knowledge and proficiency in behavioural finance and investor psychology - finology - is developing ever better relationships with clients to help them achieve their goals. Benchmarking your current finology proficiency matters!
Australian cash rates will stay low for decades. Low interest rates mean high asset prices, which means much lower returns ahead. Our client communications must be in tune with this new environment.
What's new with our live and on-demand continuing education, accreditation and certification programs.
Japan is too different from the rest of the world to be used as a road map? Acutally, more often than not, the lessons we can learn from Japan's experience are completely valid in other, very different, economies.
How will the global economy and markets evolve over the next year? There are four scenarios that could follow the mild stagflation of the last few months.
Highlight our upcoming live CE programs, and all of the complimentary on-demand CE-accredited resources published over recent months.
What's new with our live and on-demand continuing education, accreditation and certification programs.
With the US's disastrous exit from Afghanistan, the parallels between the 2020s and the 1970s just keep growing. Has a sustained period of high inflation just become much more likely?
Demand and supply dynamics could lead to 1970s-style stagflation (rising inflation amid a recession) and eventually even to a severe debt crisis.
All markets are embedded in a web of human relations, values and norms. We must rethink the relationship between market and civil society to return to a more secure and stable economic plane.
We need to consider an expanded set of solutions including hedge funds and private markets so portfolios are truly the ends to the means.
Uncertainty around the inflation outlook is at an extreme – yet a view on inflation is a critical input to building portfolios capable of achieving client goals out into the future.
Infrastructure plays a key role in the move towards decarbonisation and net-zero emissions. Government policy support and the unprecedented amount of capital required to achieve these targets should change how you think about investing in infrastructure.
Practitioner education focuses heavily on developing technical investment skills, often to the detriment of knowledge and skills that enable better engagement and understanding of the most important aspect of any portfolio – the client!
Investors should consider the real-world impact of their investments and build portfolios aligned with the UN Sustainable Development Goals as a means to building clients' wealth, and improving well-being.
Investors should view long biased, long short equity as a core solution, dedicating a meaningful slice to portfolios, rather than being constrained by traditional equity/debt buckets.
With the individual, business and economic benefits on offer from a more ethical Australia, the business case for change is a sound one. Strengthening ethics is simply a must for a better future.
What's new with our live and on-demand continuing education, accreditation and certification programs.
Starting in mid to late 2022, five structural changes will begin to kick in that will drive inflation to between 4% and 6% in the years following 2022. These changes will impact inflation for decades.
Inflation readings in the US have shot up in recent months. At the same time, stock markets are flirting with all-time highs. Something in all this does not add up.
What's new with our live and on-demand continuing education, accreditation and certification programs.
The stability of stablecoins is an illusion. They are unlikely to replace Federal Reserve money, unlikely to revolutionise finance, and unlikely to realise the dreams of their libertarian enthusiasts.
A period of slower, yet still robust, economic and earnings growth will be powerful enough to elongate the current bull market. Long-term investors should take advantage of any market pullback.
How transitory is today's inflation? One camp has a surprisingly strong conviction that the current uptick in inflation will sharply reverse itself. Others, including me, are not so sure.
Activist short sellers have received increasing attention - and notoriety - in recent years. This paper adopts the lens of narrative economics to reveal useful insights into the dynamics of activist short selling.
The stagflation of the 1970s will soon meet the debt crises of the post-2008 period. The question is not if but when.
What's new with our live and on-demand continuing education, accreditation and certification programs.
When constructing investment portfolios, one of the first questions is the objective - generally, the desired return. But ES investors have a dual investment objective. So which takes precedence?
What's new with our live and on-demand continuing education, accreditation and certification programs.
Emotions generated in the media by way of the words used in turn influence investors decisions, providing the foundation for a highly profitable investment process.
A large and growing body of commentators is warning about the very real possibility - if not outright likelihood - of policymakers unwittingly letting the inflation genie out of the bottle.
Highlight our upcoming live CE programs, and all of the complimentary on-demand CE-accredited resources published over recent months.
Research Review Quarterly - updating you on contemporary academic research on portfolio construction issues.
What's new with our live and on-demand continuing education, accreditation and certification programs.
farrelly's Dynamic Asset Allocation Handbook (Jun 2021) has been assessed and accredited by Portfolio Construction Forum for Continuing Education (CE/CPD) hours. Those who attend online on-demand must complete a CE Quiz to receive CE/CPD accreditation.
I have long been haunted by the inflation of the 1970s. Fifty years ago, I was witness to the birth of the Great Inflation as a Fed insider. This isn't the 1970s, but today's Fed waxes far too confidently about inflation.
Supply chain inflation has become an increasing preoccupation for economists, corporations and governments, as freight costs have accelerated, commodity prices increased and import prices returned to inflation.
Global financial markets have been reacting to the Covid-19 pandemic since early 2020, providing a unique opportunity for researchers to examine the impact of a global pandemic on uncertainty, investor reactions, and stock prices.
High allocations to alternatives are often justified on the basis of return and diversification advantages. Two recent papers show that with private equity and hedge fund, it's the managers who are the real winners.
Many research papers address the investment performance of sustainable investing - few have investigated whether this form of investing actually achieves the intended good. Two papers address that gap.
Target date funds first became popular as a MySuper option. Leaving aside whether target date funds are a good idea in the first place, what these two papers highlight is a lack of thought in their design.
Value investing proved to be successful strategy for nearly a century, before experiencing one of its worst performance periods in the last few years. These two papers examine whether implementation or low interest rates are the culprit.
While the retirement income system is designed to accommodate all individuals, the real test is its adequacy for the poor. These two papers address this issue for both Australia and the US.
Emotions are an important influence on financial decision-making and investing. These three papers explore how emotional regulation strategies influence decision-making under risk and uncertainty, and the link to financial success.
What's new with our live and on-demand continuing education, accreditation and certification programs.
Charles Goodhart, perhaps Britain's most distinguished economic commentator, has just co-authored a book arguing that longer-term inflation will be much higher than the past 35 years. The reason for his view is highly unorthodox - and, in our opinion, correct.
What's new with our live and on-demand continuing education, accreditation and certification programs.
Will inflation in the US this year represent "overheating" of the economy as a whole? Most likely, it will not. And while some worry that we may be returning to the 1970s, this is highly unlikely.
Investors rely on both their competence and confidence to make investment decisions. The overconfidence effect is sometimes dubbed the "mother of all biases".
Tough conditions in global supply chains in Q1 2021 - congested logistics networks, continued demand growth and cost inflation - will take much of Q2 2021 to unwind.
What's new with our live and on-demand continuing education, accreditation and certification programs.
I should have known better when I came off the bench as a retired forecaster last summer and penned a piece with the now memorable title of "America's Coming Double Dip".
These two papers provide useful insights into how investors' attitudes and behaviours evolve over time, and how our beliefs are distorted if we experience positive or negative prior returns.
What's new with our live and on-demand continuing education, accreditation and certification programs.
A generation of great international economists is passing from the scene. Richard Cooper, Robert Mundell and John Williamson each made important contributions on a variety of topics including to the ongoing debate about optimal currency arrangements.
With a healthy consumer, accommodative policy, accelerating GDP and the potential for herd immunity from Covid-19, the risk of a US inflationary overshoot has increased. We believe any inflation scare, however, will be short-lived.
What's new with our live and on-demand continuing education, accreditation and certification programs.
There is a growing debate about whether the inflation that will arise over the next few months will be temporary, reflecting the sharp bounce-back from the Covid-19 recession, or persistent, reflecting both demand-pull and cost-push factors.
Even armed with objective probabilities to help decision-making, people often add their own subjective "weights". Two papers explain this "probability weighting" and how it affects investment decisions.
The greenback's dominance may well be more fragile than it appears, because expected future changes in China's exchange-rate regime are likely to trigger a significant shift in the international monetary order.
With cash currently offering virtually no return, the question arises as to whether there is any reason to hold it as an investment.
The price of Bitcoin, the canonical cryptocurrency, is so volatile that it is almost impossible to imagine it becoming a reliable store of value or means of exchange.
In a low return environment, investors just have to accept more risk in order to meet their goals? On the face of it, this seems self evident and may even have a large element of truth. But, for many, it may be a very, very poor strategy.
The same millennials who were shafted over a decade ago are being duped again. Workers who rely on gig, part-time, or freelance "employment" are being offered a new rope with which to hang themselves.
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...
Supply chain decision makers must continue to focus on mitigating risk in 2021, not maximising growth. Political risks outbalance opportunities.
The Investment Management Analyst Certificate (IMAC) advances investment management analyst knowledge, skill and expertise in a definitive set of competencies necessary for building and/or advising on quality multi-manager portfolios. It is both a structured post-graduate certificate course in its own right, and the Australian-based Registered Education Program for the global Certified Investment Management Analyst® (CIMA®) program.
After the First World War, we got the Roaring 20s. Now, a century later, it looks like we are going to do the same again.
The madness at the end of January around a few now-famous stocks can largely be explained by the fact that all of five conditions for market madness were met.
Covid-19 has offered some tough but useful lessons about governance. Many wealthy countries have not managed the crisis as well as many poorer and vulnerable countries.
Economic recovery, like Covid-19 vaccines, will not be evenly distributed around the world over the coming two years. A rising tide of recovery is inevitable, but it will not lift all boats.
This lecture instructs farrelly's subscribers on on the principles of managing currency in portfolios.
This lecture instructs farrelly's subscribers on the foundations of asset allocation in three parts - key principles of asset allocation, optimisation and how to define an asset class.
In the early and middle stages of an economic expansion, running with the herd can be a beneficial and safe proposition. As this recovery unfolds, should investors break off, worried about the formation of a bubble?
November 2021 will mark the 20th anniversary of the BRIC acronym that I coined to capture the economic potential of Brazil, Russia, India, and China. Many commentators will be revisiting the concept - so here are my own thoughts on the matter.
I believe time allows signals to surface amidst the ubiquitous noise. In the spirit of Annie's "just thinking about tomorrow..." in which she pleads for us to "hang on 'til tomorrow, come what may," I present my 2021 predictions for the coming five years.
What's new with our live and on-demand continuing education, accreditation and certification programs.
The first generation of behavioural finance described people as "irrational", fooled into cognitive and emotional errors that diminish wealth. The second generation of behavioural finance describes people as "normal" - we use shortcuts and sometimes commit errors on the way to satisfying our wants.
Finology - behavioural FINance and investor psychOLOGY - knowledge and skills substantially enhance practitioners' ability to communicate with clients and manage portfolios more effectively. This Backgrounder seeks to foster a greater understanding of and interest in finology.