Bonds are no longer a reliable risk diversifier
Gopi Karunakaran shared his thoughts at the Portfolio Construction Forum Markets Summit 2018. Gopi’s presentation is available to watch or download.
Insights
Does fixed income still diversify portfolio risk?
Gopi Karunakaran shares his thoughts on the global fall in interest rates over the past 10 years and what to expect when this tailwind to asset prices subsides.
Markets Wake Up To Inflation Risk
Inflationary pressures have been building globally and particularly in the US. The rise in breakeven inflation rates over the past two months shows that markets have begun to price this in.
The Music May Still Be Playing But The Bar Tab Is Running Out
In July 2007, then Citigroup CEO Chuck Prince infamously said “…as long as the music is playing, you’ve got to get up and dance. We’re still dancing.”, and the rest is history.
Better ways to position for future inflation surprise
A notable theme over the past few years has been the dramatic flattening of breakeven inflation curves.
WYSIATI
Psychologist Daniel Kahneman Kahneman, together with his late colleague Amos Tversky, explored the many cognitive biases that impair human decision making, particularly in relation to uncertain events, and coined the acronym WYSIATI – What You See Is All There Is.
The FED Goes From QE To QT
The FED has announced its much anticipated plan to start gradually shrinking its balance sheet.
Volatility pricing … is the rock really so steady
The expression ‘steady as a rock’ is associated with stability, steadfastness and reliability. The kinds of characteristics that fund managers like to co-opt into their firm names. In financial markets uncertainty is always present; it’s just the degree of it that varies.
Linkers surge on UK inflation shock: a British history lesson
We discuss the surge in performance of UK inflation linked bonds and the benefit to Australian investors.
It’s time to MOVE
Two charts we are watching closely and what they mean to us and investors.