Michael

Author's details

Date registered: January 28, 2012

Latest posts

  1. Random Thoughts on Cryptocurrencies at a Random time of the year — December 31, 2022
  2. Investment Philosophy … a short primer — June 6, 2022
  3. A Few ESG Investment Thoughts — June 28, 2021
  4. Approaching the Zero bound — May 22, 2020
  5. Worry about Valuations??? … yeah, a bit … — April 24, 2020

Most commented posts

  1. The disappearing credit spread…US now at pre-GFC levels — 6 comments
  2. ASX200 to go through 5000!!! — 4 comments
  3. A Must Read on “The Economic State of Australia” — 4 comments
  4. Tonight should be a turning point…either way — 3 comments
  5. Asset Allocation that considers Asset Weighted Returns — 3 comments

Author's posts listings

Mar 14

Diversification … clearing up what it is and what it isn’t

Categories:

General Investment, Investment Strategy, Managed Funds, Portfolio Construction, Risk

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Diversification is one of the central tenets of investment management and fundamental beliefs across the global financial planning industry. Its validity was set in stone by Harry Markowitz in his PhD dissertation and 1952 Journal of Finance article, Portfolio Selection, which demonstrated the effects of combining uncorrelated assets … i.e. improvement in the portfolio’s return …

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Jan 14

Designing the rules of the game … Investment Policy Statement (IPS)

Categories:

General Investment, Governance, Portfolio Construction

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The following article was published by Professional planner Magazine a couple of months ago and whilst can be found on their website by clicking here … the original article follows. Background One of the biggest trends in the financial planning today is the shift towards managed accounts. This is primarily an exercise in increasing efficiencies …

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Aug 29

Beware the Benchmark Hugger … it might be you?

Categories:

Data, Equities, Financial Planning, General Investment, Investment Strategy, Managed Funds, Portfolio Construction

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Background For quite a few years now, many commentators and researchers have criticized active strategies that charge active fees to receive benchmark-like returns. If a portfolio looks a lot like the benchmark it is trying to outperform, it doesn’t mean there won’t be outperformance, but after taking fees into consideration it is much more difficult. …

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Aug 23

Good benchmarks, Bad benchmarks … and how to choose the right one

Categories:

General Investment, Managed Funds

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The following article was first published in the August Professional Planner magazine and can also be found on their website by clicking here … otherwise just read on … The management guru, Peter Drucker, is attributed with the phrase, “you can’t manage what you don’t measure” and whilst we know that is not completely true, …

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Aug 07

Four Stages of Investment Analysis

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Uncategorized

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Professional Planner magazine published the following in their June Magazine and also on their website … you can also click here. Otherwise … read on … On the first Friday in May, the Chief Investment Officer of the Future Fund, Raphael Arndt, spoke about how they are refining their approach to their listed equities investment …

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Feb 13

Economic Growth & Sharemarket Returns … looking for relationships

Categories:

Economy, Equities, General Investment, Investment Strategy, Macroeconomics

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Background According to (Elroy Dimson, 2010) the “conventional view Is that, over the long run, corporate earnings will constitute a roughly constant share of national income, and so dividends out to grow at a similar rate to the overall economy. This suggests that fast-growing economies will experience higher growth in real dividends, and hence higher …

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Nov 01

Melbourne Cup … Macquarie Quants take it up a notch

Categories:

Melbourne Cup

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After a few tough years the Macquarie quant team have decided to upgrade their quantitative models. Looks like they’ve gone to a lot of effort so if they get it wrong again it might be quite fascinating to see how they respond. Anyway, for those who are interested … please click here for their quant-based …

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Oct 29

Global Economic Data…interactive chart

Categories:

Economy, Interest Rates, Macroeconomics

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Aug 17

Look for the Signal amongst the Noise

Categories:

Equities, Financial Planning, General Investment, Investment Strategy, Managed Funds, Portfolio Construction, Risk

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Background When disappointing performance occurs, alarm bells will typically ring in the minds of investors, advisers, asset consultants and perhaps the managers themselves. Investing has only ever been a long game but thanks to the internet, the 24-hour news cycle, social media, etc. etc., it appears that success is expected to occur quickly and this …

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Jun 20

Market Inflation Expectations…lower than RBA

Categories:

Fixed Interest, Inflation Linked Bonds, Interest Rates, Yield Curve

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The above chart shows the yields for Australian Government Bonds, both nominal bonds and indexed bonds, as at the end of last week (although you can adjust the pricing date to any trading day of 2016). A simple way to determine the market’s inflation expectations over different timeframes is to simply subtract the difference. If …

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