Join as Jordan Doyle and Genevieve Hayman discuss their recent report, "Smart Beta, Direct Indexing, and Index-Based Investment Strategies." The conversation explores the historical context and substantial growth of index investing, highlighting the expansion of index ETFs, mutual funds, and smart beta ETFs. Genevieve and Jordan provide insights into how these strategies should be understood and integrated within client portfolios. Tune in to gain a deeper understanding of the dynamic world of index-based investment strategies.

Campbell Harvey, a professor of finance at Duke University, director of research at Research Affiliates, and author of "DeFi and the Future of Finance," is best known for identifying the link between an inverted yield curve and impending recessions—a theory that has guided financial practitioners for nearly four decades. This episode delves into his famous recession indicator and its historical performance, as well as perspective on the current volatile market and the Federal Reserve's potential actions. Tune in for an enlightening conversation filled with expert analysis and valuable investment insights.

On this episode of the Enterprising Investor podcast, host Mike Wallberg, CFA, interviews Mark Higgins, CFA, author of "Investing in US Financial History." Mark delves into the comprehensive process of breaking down US financial history from 1790 to the present day, highlighting key inflection points and the evolution of the financial system. Join Mike and Mark as they uncover the compelling insights from centuries of financial markets in this engaging discussion.

In this episode of the Enterprising Investor Podcast, host Mike Wallberg, CFA, introduces Barbara Stewart, CFA, an experienced FX trader, high-net-worth manager, researcher, author, and keynote speaker. Barbara discusses her annual Rich Thinking study, which focuses on women and finance. This year's study asked 50 successful people about their investment portfolios. Barbara shares her insights and goals for the study, aiming to advance the world of women and finance. Her full report will be released on Friday, March 8, 2024.

In March, Guiding Assets is joining forces with the Enterprising Investor Blog. The podcast will be renamed and become the Enterprising Investor podcast. Same great content as before. Better alignment with our mission of putting investor content first. 

In this episode of Guiding Assets, host Mike Wallberg, CFA, interviews Dr. Daniel Peris, CFA, a senior portfolio manager with Federated Hermes. Dr. Peris discusses his new book, "The Ownership Dividend," and the paradigm shift he sees in how U.S. investors think about dividend stocks. He explains that for generations, investors have considered it normal to focus on capital gains and overlook the importance of dividends. Drawing on his background as a historian, Dr. Peris provides a unique perspective on the significance of dividends in investment strategies.

In this episode of Guiding Assets, host Mike Wallberg is joined by Dr. Edward McQuarrie, Professor Emeritus of the Levy School of Business at Santa Clara University. Dr. McQuarrie challenges some long-held assumptions in financial markets, including the belief that stocks always outperform bonds over the long term and that a negative correlation between bonds and stocks leads to effective diversification. He discusses his research, which takes a historical perspective by analyzing U.S. stock and bond records dating back to 1792. Dr. McQuarrie explains how his research builds upon previous work by Jeremy Siegel, highlighting the advantages of accessing older historical data. This thought-provoking episode challenges conventional wisdom and provides listeners with a fresh perspective on portfolio theory.

Read the article in the Financial Analysts Journal: https://cfainst.is/49uRrEq

In this episode of Guiding Assets, host Mike Wallberg, CFA, sits down with Ivan Mitov, the VP and Director of Risk Research for FactSet. Ivan leads a team of quantitative researchers who focus on building and applying multi–asset class risk models. The discussion centers around the application of AI and large language models in the investment industry. Ivan explains the research process and the outputs his team works towards for clients. Tune in to gain insights into the role of AI in risk modeling and its impact on the industry.

In this episode of Guiding Assets, host Mike Wallberg, CFA, is joined by Olivier Fines, CFA, Head of Advocacy and Capital Markets Policy Research for EMEA at CFA Institute. They discuss the findings of a recent CFA Institute report on the valuation of cryptoassets. The conversation explores the history of CFA Institute's engagement with cryptocurrency and how traditional valuation techniques can be applied to determine the defensible value of cryptocurrencies. Olivier shares insights from his experience in investment management and highlights the key takeaways from the report. Tune in to gain a deeper understanding of the valuation of cryptoassets and its significance for investment professionals. Read the full report here: https://cfainst.is/48nqTot

In this episode of Guiding Assets, host Mike Wallberg interviews Dr. Joe Simonian, a leading quant expert in the field of investment research. Dr. Simonian is the co-author of a new book called "Quantitative Global Bond Portfolio Management," which explores the application of quantitative methods in fixed income investing. They discuss the various topics covered in the book, including both traditional and cutting-edge techniques in global bond management. Listeners will gain insights into the intersection of quantitative investing and fixed income, as well as emerging markets, AI, alternative data, and more. Tune in to hear Dr. Simonian's expertise and learn about the exciting developments in this field.

In this episode of Guiding Assets, host Mike Wallberg, CFA, is joined by Kunal Kapoor, CFA, CEO of Morningstar, to discuss the rise of AI and its role in financial markets. Kunal shares insights into Morningstar's mission to empower investor success. Tune in to learn more about the accelerating pace of change in the industry and how Morningstar is adapting to it.

In this episode of Guiding Assets, host Mike Wallberg, CFA, is joined by Dan McGoey, CFA, a portfolio manager and analyst on the multi-asset investment team at Lazard Asset Management. They discuss real assets, which are companies or businesses with high-cost investments and long useful lives, such as those in the real estate and infrastructure sectors. They also explore different ways to invest in real assets, including through direct investment or listed securities. Tune in to learn more about real assets and Dan's experience investing in Latin America.

Join Mike Wallberg, CFA, and Ken Laudan, portfolio manager of Buffalo Fund's Blue Chip Growth Fund, for a thought-provoking discussion on the future of AI in investing. Ken shares his contrary view on AI's transformational potential, drawing on his extensive experience as a sell-side analyst and buy-side portfolio manager. The conversation also touches on the current market landscape and the emergence of a shifting narrative toward other stocks. Tune in to gain a fresh perspective on the evolving role of AI in investments and the complexities of today's market dynamics.

In this episode of Guiding Assets, host Mike Wallberg, CFA, interviews Dr. Anja Hochberg, responsible for multi-asset solutions at Zürcher Kantonalbank. They discuss the challenges of setting asset mix in a volatile market, with topics including real estate, equity markets, and the uncertain global economic outlook. Dr. Hochberg explains the importance of multi-asset portfolios for both institutional and private clients and how they actively manage opportunities and risks. They also explore the migration away from traditional 60-40 portfolios for institutional investors and the drivers behind those changes. Tune in for expert insights on navigating today's investment landscape.

In this episode of Guiding Assets, host Mike Wallberg, CFA, is joined by Mark Heppenstall, CFA, president and chief investment officer of Penn Mutual Asset Management. They discuss the nuances of managing money for an insurance company, highlighting the importance of managing assets to be in line with liabilities. Mark also shares insights on the current state of credit and bond markets, revealing where he sees value. Tune in to gain a deeper understanding of the unique challenges and opportunities in insurance-focused investing.

In this episode of Guiding Assets, host Mike Wallberg, CFA, speaks with Rhodri Preece, CFA, and Ryan Munson from the CFA Institute Research & Policy Center about their report, Future State of the Investment Industry. The report explores four potential scenarios for the industry and how it may be shaped in the next five to ten years. They discuss the goals of the report and the research process involved. This episode provides valuable insights into the major trends and disruptors affecting the investment industry.
 
Read the full report: https://cfainst.is/3PVMjm1

Host Mike Wallberg, CFA, interviews Javier Gonzalez Lastra, CFA, a portfolio manager at Tema ETFs, about the investment potential of the luxury goods sector. Javier explains that while the luxury goods market is fragmented, companies like LVMH have managed to build large conglomerates. He discusses the reasons why his team at Tema decided to launch a luxury ETF, pointing to demographic trends like the growing purchasing power of females in the workforce and the rise of the middle class in Asia. Javier also touches on the pricing power of luxury goods, which is driven by their desirability and negative price elasticity.

In this episode of Guiding Assets, Mike Wallberg, CFA, interviews the head of the global investment team at Orbis Investments, Simon Skinner, CFA. They discuss Orbis' unique approach to asset management, including refunding of performance fees in the case of underperformance. They also delve into Orbis' investment insights team and their use of data to make better investment decisions. Tune in to learn more about Orbis' progressive strategies in the investment industry.

In this episode of Guiding Assets, host Mike Wallberg is joined by serial entrepreneur and angel investor, Mac Lackey. With a background in starting, scaling, and selling multiple companies, Mac shares his secrets to success as an entrepreneur and investor. From his passion for soccer to his various ventures in the sports industry, Mac discusses his journey and the lessons he has learned along the way. Tune in to gain insights on achieving success in the business world.

Ever wondered how your confidence level influences your decision making and how understanding this concept could be a game changer in the world of finance? Tune into our engaging conversation with Peter Atwater, author of  the new book The Confidence Map: Charting a Path from Chaos to Clarity. You probably know Peter as the thought-leader who coined the term 'K-shaped recovery.' In this interview we navigate the intriguing facets of confidence mapping, from the two critical axes of certainty and control to the four quadrants — the Comfort Zone, the Stress Center, the Passenger Seat, and the Launch Pad — each providing unique insights into our behaviors and responses.
 
As our dialogue deepens, we explore how personal vulnerabilities can act as catalysts in decision making, shifting our focus to immediate concerns and diminishing strategic thinking. Peter introduces us to the concept of the 'five Fs,' a framework delineating our reactions to stress and providing strategies to evade the negative reinforcement loop of catastrophizing. This discussion serves as a critical reminder of our need to manage vulnerability and anxiety to make more informed decisions.
 
Our discussion then takes a leap into the world of finance, revealing how these concepts can significantly impact investment strategies. We dissect the five reactions to intense vulnerability — fight, flight, freeze, follow, and nihilism — and their crucial role in risk assessment and decision-making within the investment landscape. To cap it off, Peter shares invaluable insights from his own career journey, underlining the importance of understanding the crowd and its sentiment. So, join us for this insightful episode where we delve into the human psyche, its impact on our decision making, and the role it plays in the world of finance.

Discover the crucial role of governance and fiduciary thinking in the blockchain and crypto space as we navigate the recent cryptocurrency failures of FTX and Terra Luna with Eelco Fiole, co-founder and managing partner of Alpha Governance Partners, and guest host, Andres Vinelli, chief economist at CFA Institute. Uncover how the lack of oversight and risk management contributed to these disasters and gain valuable insights on the importance of establishing trust with investors through proper governance.

Join our riveting conversation as we explore the evolving landscape of the crypto industry, touching on the impact of energy consumption and ESG considerations on the success of new protocols. Learn about the different consensus mechanisms used in cryptocurrency transactions and their implications on energy use, as well as the potential of carbon taxes on the future of crypto. Don't miss this essential episode for anyone seeking to keep pace with the rapidly changing world of cryptocurrency governance and investment.

Discover how to unlock the power of alternative data in your investment strategy with Kai Wu, founder and chief investment officer of Sparkline Capital, as he speaks with Paul Andrews, head of Research, Advocacy, and Standards at CFA Institute. Listen in as we explore the use of modern technology, data, and machine learning to enhance traditional investment approaches. Kai shares how Sparkline Capital applies these innovative techniques to measure intrinsic value, especially in the realm of intangible assets. Learn how alternative data sets and tools like natural language processing and AI can revolutionize your approach to value investing.
 
In the second part of our discussion, we focus on the potential of AI in risk management and investing. We explore how natural language processing can be used to quantify intangible assets and measure risk. Kai shares insights from Sparkline's experiences in using alternative data to make more informed investment decisions. We also discuss the significance of creating transparent and traceable models and the growing role of data vendors in the investment landscape. Don't miss out on this engaging conversation packed with actionable insights for today's tech-savvy investor.
 
 
--------- EPISODE CHAPTERS ---------
 
(0:00:06) - Using Alternative Data in Value Investing
(0:12:14) - AI in Investing and Risk Management
(0:17:20) - The Importance of Unstructured Information

In this episode of Guiding Assets, Paul Andrews, head of Research, Advocacy, and Standards at CFA Institute, interviews BentallGreenOak co-CEO Sonny Kalsi. They discuss the outlook for office real estate and regional banks, as well as the best places to invest in this environment. They also touch on topics such as diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG) issues. BentallGreenOak is one of the largest real estate investment firms in North America and Sonny shares his insights on the industry. Overall, this episode provides valuable insights for investors looking to navigate the current economic landscape.

[00:02:29] Regional banks' real estate lending.

[00:03:18] Private market lenders.

[00:07:31] Systemic Risk in Banking.

[00:12:44] Real estate and carbon emissions. 

 [00:16:09] Systemic risk and transition.

Fei-Fei Li, former Chief Investment Officer at Research Affiliates and current CIO at Kavout Algo Financial, shares insights from her extensive background in finance. She discusses her tenure at Research Affiliates, where she led research and strategy design for the firm's systematic active strategies and smart beta indices. The conversation then pivots to her current role at Kavout Algo Financial, where she is spearheading the development of an AI tool aimed at revolutionizing the investment research process. Feifei provides a fascinating look at the intersection of AI and fintech, and what it means for the future of investment research. Feifei also shared insights from her recent Financial Analyst Journal article with Robert Arnott and Juhani Linnainmaa, "Smart Rebalancing," which explores strategies to reduce trading costs while maintaining portfolio efficacy.

Join us for a celebratory trip down memory lane as we mark the 500th episode of Guiding Assets! This little show we started all the way back in 2007 has now survived a dozen hosts, two financial crises, and a pandemic. We will look back at the history of the show and welcome back some familiar voices to share their favorite clips from memorable episodes. 

A huge thank you to all the listeners who have been with us for all these years. And to everyone who has contributed their talents to make this show happen. Happy 500 everyone!

--------- EPISODE CHAPTERS ---------

(0:00:13) - Celebrating 500 Episodes of Guiding Assets (6 Minutes)

We take a trip down memory lane to celebrate our 500th episode. We hear from some familiar voices as we trace back to the origin of the show in 2007. We get a glimpse of our early days of podcasting, discussing the challenges of creating episode content from one of our original hosts, Rob Gowen, CFA. 

(0:06:43) - Mike Walberg, CFA (6 Minutes)

Mike shares some thoughts on the show and his favorite episodes. 

(0:12:59) -  Lauren Foster (5 Minutes)

Host Lauren Foster also stops by to catch up and share some thoughts.

(0:18:22) - Closing(1 Minutes)

We close out with Mitch thanking all the people who have contributed to the show over the years. 

---Links to full episodes of highlight clips------

William N. Goetzmann: Finance and Human Progress - Two Sides of the Same Coin

https://bcove.video/3n5p8nP

John Bogle: Reflections on 40+ Years in the Finance Industry

https://bcove.video/3Wt7jlv

Peter Zeihan: The New World (Dis) Order

https://bcove.video/421iKlQ

Jan Van Eck: History and Investing - Gold, ETFs, and Alexander Hamilton

https://bcove.video/2DO8hVl

In this fascinating episode, Andres Vinelli, chief economist at CFA Institute, sits down with Marko Papic, partner and chief strategist at Clocktower Group, to explore the geopolitical implications of a multi-polar world. Listen in as we discuss the role of the US and emerging markets, and provide tips for applying a geopolitical strategy toolkit to investing. We also forecast the resolution of the debt ceiling and analyze why a professional investor should care about geopolitics. Get ready to dive into the idea of a multi-polar world being a discordant one, and how this can impact investment profiles in different regions or sectors in the economy.

Join us as we continue the conversation by examining strategies emerging market economies can use to benefit from engaging with both the US and China. We'll also discuss how investors can use material constraints to assess political paths of least resistance. Don't miss our analysis on the irony of China having withdrawn their efforts to finance infrastructure projects around the world, and the efforts of the US to counter the Belt and Road Initiative. This episode is packed with insights on investing in emerging markets and commodities in a multi-polar world — you don't want to miss it!

--------- EPISODE CHAPTERS ---------

(0:00:13) - Geopolitics and Investing (10 Minutes)

Marko Papic, partner and chief strategist at Clock Tower Group, and I explore the geopolitical implications of a multi-polar world. We examine the role of the US and emerging markets, and provide tips for applying a geopolitical strategy toolkit to investing. We forecast the resolution of the debt ceiling and discuss why a professional investor should care about geopolitics. We analyze the idea of a multi-polar world being a discordant one, and how this can impact investment profiles in different regions or sectors in the economy.

(0:10:40) - Assessing Geopolitics for Asset Allocation (13 Minutes)

We explore strategies emerging market economies can use to benefit from engaging with both the US and China, and how investors can use material constraints to assess political paths of least resistance. We also discuss the irony of China having withdrawn their efforts to finance infrastructure projects around the world, and the efforts of the US to counter the Belt and Road Initiative.

(0:23:23) - Investing in Emerging Markets and Commodities (2 Minutes)

Marko Papic and I discussed the global investment landscape in a multi-polar world. We looked at how countries like Spain, America, Brazil, Netherlands, and Japan are increasing their CAPX spending, and how this could create a new CAPX-driven cycle, even without a single country to replace China. We examined the impact of this cycle on the US dollar and emerging markets, as well as the strategies investors can use to benefit from this shift in the global economy.

Susan HayesCulleton, CFA, a noted author, economist, and managing director of The HayesCulleton Group, shares her experience in building a successful financial literacy program called "Money Matters" that has been rolled out in every high school in Ireland. We discuss the importance of relationships, understanding the teacher and student perspectives, and having a clear outcome in mind when creating an engaging and interactive curriculum. We also delve into Susan's creative approach to teaching financial concepts, such as her character Paul who learns about alternatives to direct property investment. By using relatable, real-life examples and engaging narratives, Susan aims to make financial education more accessible and enjoyable for young people. Throughout our conversation, we discuss the challenges of teaching financial literacy to young people and address misconceptions surrounding the stock market as gambling. We emphasize the emotional aspect of money and the importance of understanding our learned behaviors and attitudes toward it. Additionally, we explore the process of deciding the chapters for the financial literacy book "Money Matters," focusing on various ways to make the content relatable and engaging for teenagers. The inclusion of CFA charterholders' profiles provides valuable insights into potential careers, and incorporating networking lessons helps students develop essential life skills. Finally, Susan shares her willingness to assist other countries and societies in adopting this model for financial literacy education. Join us for an engaging and informative discussion with Susan, and discover the importance of financial literacy in today's world.
 
Chapters:
 
(0:00:04) - Building Financial Literacy
(0:09:15) - Real Estate Investment
(0:12:13) - Navigating Financial Literacy Education
(0:18:57) - Financial Literacy, Career Paths and Networking
(0:28:01) - The Key to Success
(0:31:26) - Financial Literacy With Susan HayesCulleton
 
Chapter Summaries:
 
(0:00:04) - Building Financial Literacy (9 Minutes)
In this episode of Guiding Assets, we hear a success story from SusanHayes Culleton, CFA, a noted author, economist, and managing director of The HayesCulleton Group. She shares her experience in building a financial literacy program called "Money Matters" that has been rolled out in every high school in Ireland, focusing on personal finance, entrepreneurship, and investing. Susan emphasizes the importance of relationships, understanding the teacher and student perspectives, and having a clear outcome in mind when creating an engaging and interactive curriculum.
 
(0:09:15) - Real Estate Investment (3 Minutes)
In this part of the conversation, we delve into the creative process behind Susan's approach to teaching financial concepts, such as her character, Paul, who learns about alternatives to direct property investment. By using relatable, real-life examples and engaging narratives, Susan aims to make financial education more accessible and enjoyable for young people. We also discuss the challenge of overcoming biases and misconceptions around the financial markets, emphasizing the importance of demystifying these topics for a wider audience.
 
(0:12:13) - Navigating Financial Literacy Education (7 Minutes)
Throughout this conversation, we discuss the challenges of teaching financial literacy to young people and address misconceptions surrounding the stock market as gambling. We also emphasize the emotional aspect of money and the importance of understanding our learned behaviors and attitudes toward it. Additionally, we examine the role of teachers in educating students about personal finance, entrepreneurship, and the stock market, while considering their varying interests and confidence levels. Furthermore, we explore the importance of building relationships with stakeholders and being open to feedback in the development of financial literacy curriculum, ultimately prioritizing the needs of students and teachers.
 
(0:18:57) - Financial Literacy, Career Paths and Networking (9 Minutes)
We explore the process of deciding the chapters for the financial literacy book "Money Matters," focusing on various ways to make the content relatable and engaging for teenagers. The inclusion of CFA charterholders' profiles provides valuable insights into potential careers, and incorporating networking lessons helps students develop essential life skills. We also discuss the possibility of applying this model to other disciplines, such as STEM, and the ongoing collaboration on a new book called "Engineering World." Finally, Susan shares her willingness to assist other countries and societies in adopting this model for financial literacy education.
 
(0:28:01) - The Key to Success (3 Minutes)
In this segment, Susan shares her first job in the industry as part of a stock market training company and the advice she would give to her younger self — focusing on the importance of relationships, empathy, and knowing where you want to go in life.

Dive deep into the world of asset allocation with Anubhuti Gupta, CFA, CIPM, a senior principal consultant for Mercer's Wealth business in Singapore. We discuss the impact of inflation on portfolios and how investors can structure them for resilience amidst inflationary pressures. We also explore the challenges of diversification in 2022 and the importance of private markets in portfolio allocation. Additionally, we touch on the benefits of investing governance, the role of Outsourced Chief Investment Officer (OCIO) providers, and the importance of keeping an open mind throughout our investment careers. Join us in this insightful conversation as we navigate the ever-changing landscape of investing and asset allocation.

Chapters:

(0:00:03) - Asset Allocation in Inflation
(0:09:26) - Diversifying Portfolios in an Unpredictable Market
(0:20:02) - Benefits of Investing Governance
(0:23:43) - Keeping an Open Mind

Chapter Summaries:

(0:00:03) - Asset Allocation in Inflation (9 Minutes)
We discuss the impact of inflation on portfolios and how investors can structure their portfolios for resilience in the face of inflationary pressures. Anubhuti highlights the importance of focusing on energy efficiency, security, infrastructure, technology, and materials to facilitate the transition. We also delve into the potential for value stocks to outperform in the current market environment, as growth equities may struggle to recover to previous market highs'

(0:09:26) - Diversifying Portfolios in an Unpredictable Market (11 Minutes)
Diving into the challenges of diversification in 2022, we discuss the risks associated with relying on traditional strategies like the 60/40 portfolio. With equities and bonds producing negative results simultaneously for the first time in many investors' careers, it is essential to consider more dynamic approaches, such as incorporating specialist downside risk mitigation strategies or using real assets. We also touch on the importance of private markets in portfolio allocation, emphasizing their continued relevance for those with long horizons and a desire for innovation. However, it is crucial to reassess portfolio risk and exposure levels in the context of both public and private markets.

(0:20:02) - Benefits of Investing Governance (4 Minutes)
As we examine the disconnect between private real estate and REITs, we consider the potential opportunities that may arise when valuations for private real estate funds align with reality. We stress the importance of maintaining a long-term view and avoiding short-term panic-driven decisions that may be detrimental to the portfolio. Discussing governance and the outsource CIO (OCIO) model, we highlight the benefits of working hand in hand with asset allocators to manage assets as opposed to in-house management. This approach allows for streamlined decision-making processes and the ability to take advantage of market dislocations and emerging opportunities.

(0:23:43) - Keeping an Open Mind (3 Minutes)
In this conversation, we delve into the concept of Outsourced Chief Investment Officer (OCIO) providers and their role in easing the pain points for asset allocators and investment teams. By outsourcing certain aspects of the value chain to OCIO providers, entities can focus on high-value activities where they excel. Additionally, we share some personal insights from Anubhuti Gupta's career journey, emphasizing the importance of keeping an open mind for both young and seasoned professionals in the industry.

In this episode, we dive deep into strategies for building robust market forecasts with Gerry Fowler, CFA, Head of European Equity Strategy and Global Derivative Strategy at UBS. We discuss the importance of leading indicators in understanding potential future outcomes for market and business cycles, as well as the impact of rising interest rates on corporate profitability and the potential economic ramifications. We also explore how harnessing your strengths and leaning into them can lead to a successful career. Join us as we uncover the secrets to navigating the ever-changing financial landscape and making the most of the opportunities it presents.

Chapters:

(0:00:00) - Building Market Forecasts
(0:14:13) - Navigating Interest Rates
(0:21:16) - Harnessing Strengths to Succeed in Career

Chapter Summaries:

(0:00:00) - Building Market Forecasts (14 Minutes)
In this episode, we explore strategies for building more robust market forecasts with Gerry Fowler, CFA, Head of European Equity Strategy and Global Derivative Strategy at UBS. We discuss the importance of leading indicators in understanding potential future outcomes for market and business cycles. By examining these indicators, investors can gain insight into the expansion, slowdown, contraction, and recovery phases of the business cycle. Fowler highlights the importance of macro regime distributions, which help identify how market performance, profits, and valuations cluster around the business cycle. He emphasizes the need for humility when interpreting leading indicators, as they are often mere guesses with inherent errors.

(0:14:13) - Navigating Interest Rates (7 Minutes)
We discuss the impact of rising interest rates on corporate profitability and the potential economic ramifications. Despite healthy jobs growth and elevated inflation figures, there are signs that the tightening of credit standards and weakening demand for credit will affect profitability. The lag effect of rate hikes and the hidden credit tightening in private enterprise, along with the increase in bankruptcies, suggests that there may be a need to brace for a potential economic downturn. The conversation also touches on the Federal Reserve's potential pivot to a more dovish position, the likelihood of a recession starting in the third quarter of this year, and the expectation of aggressive rate cuts from the fourth quarter.

(0:21:16) - Harnessing Strengths to Succeed in Career (2 Minutes)
Reflecting on my career in finance, I recall my first job at Salomon's with Barney in Australia and my journey into derivatives strategy and portfolio management. I discuss the importance of knowing one's strengths and leaning into them for success. Additionally, I emphasize the value of becoming a specialist while maintaining a broad network of colleagues, competitors, and providers for a well-rounded perspective as you progress in your career.

In this thought-provoking episode, we dive deep into the challenges facing the European banking sector with expert guest Joachim Klement, CFA, an investment strategist at Liberum. We tackle the recent confidence breakdown in the industry, the potential risks of bank bailouts, and the impact on bond markets, while also reflecting on Joe's experience in the financial industry and his valuable advice to "do your own thinking. " Don't miss this insightful and timely discussion as we navigate the complex world of European banking and uncover the critical differences between now and the 2008 financial crisis.
 
Chapters:
 
(0:00:04) - European Banking Confidence
(0:13:19) - The Risk of Bank Bailouts
(0:18:32) - Do Your Own Thinking
 
Chapter Summaries:
 
(0:00:04) - European Banking Confidence (13 Minutes)
In this episode, we explore the current challenges in the European banking sector with Joachim Klement, CFA, an investment strategist at Liberum. We discuss the recent confidence breakdown in the banking industry, starting with Silicon Valley Bank's bankruptcy, and how it affected other banks like First Republic Bank and Credit Suisse. Joachim also shares his insights on the UBS and Credit Suisse deal and the potential impacts of the current turmoil on various sectors. He emphasizes the importance of investing in companies with positive free cash flows and highlights the differences between the current situation and the 2008 financial crisis.
 
(0:13:19) - The Risk of Bank Bailouts (5 Minutes)
In this portion of the episode, we examine the risk of a liquidity crisis due to a potential bank run in Europe and the impact on bond markets. We also discuss the divergence in expectations between the US and European central banks, highlighting the potential consequences of cutting interest rates too soon. Furthermore, we touch on the unintended consequences of bank bailouts and the possibility of future regulation akin to the Dodd–Frank Act.
 
(0:18:32) - Do Your Own Thinking (1 Minutes)
As we wrap up our conversation with Joachim Klement, CFA, we reflect on his first job in the financial industry as an investment consultant for UBS. Joe shares his top piece of advice for his younger self: do your own thinking. He emphasizes the importance of forming one's own opinions rather than simply adopting the views of others, as this can lead to defending positions one may not genuinely believe in.
 
Listen for free and browse our back catalog of Guiding Assets episodes: https://link.chtbl.com/guidingassets

During the pandemic, many people creatively changed their approach to work—building new paths to wealth that leveraged their personal skills and life priorities. Mike Wallberg, CFA, and Barbara Stewart, CFA, researcher, keynote speaker, and author of Rich Thinking, discuss these changes, including what it means to have a personal business model and invest in yourself and what we can learn about our clients and ourselves as a result.

Find the full line-up of CFA Institute podcasts, visit https://cfainst.is/podcasts.

Global FX markets with $2.1 trillion daily spot turnover far overshadow fixed income and equities markets in size, yet more can be done to assure their integrity and effective functioning.  Mike Wallberg, CFA, speaks with Dagmara Fijalkowski, CFA, head of global fixed income and currencies at RBC Global Asset Management, about the FX Global Code, a set of principles that goes beyond a code of ethics to embody industry best practices. Fijalkowski explains how the FX Global Code has helped to improve the governance, internal processes, best execution and risk management practices surrounding FX transactions for her firm and their clients.

Find the Enterprising Investor article here: https://blogs.cfainstitute.org/investor/2023/02/24/global-fx-code-of-conduct-is-now-the-time/

One approach that can help investment advisors go beyond the familiar "Know Your Client (KYC)" information gathering is to use a genogram to map a client's family history. The genogram looks like a family tree, but also provides detailed information about current and past family relationships and helps identify financial patterns and family values over generations. Mike Wallberg, CFA, speaks with Kim Curtis, CFA, CEO of Wealth Legacy Institute, Inc. and best-selling author, about the genogram technique to help advisors better understand a client's family dynamics that can lead to more productive wealth management planning and deeper client relationships. Thank you for listening, if you enjoyed this episode please tell a friend and be sure to leave a review.

To find the full line-up of CFA Institute podcasts, visit https://cfainst.is/podcasts.

The tried and true rules of the formal debate model can be useful to learn the skills needed to disagree productively, find common ground, and influence decisions, whether you're presenting an analysis to colleagues in your firm's security selection process or fielding portfolio performance questions from clients. Mike Wallberg, CFA, speaks with Julia Dhar, Managing Director and Partner, Boston Consulting Group, about debate model techniques and other behavioral insights to help investors sharpen investment ideas and improve client relationships.

Thank you for listening, if you enjoyed this episode please tell a friend and be sure to leave a review. To find the full line-up of CFA Institute podcasts, visit https://cfainst.is/podcasts.

Tune in as David Blanchett, CFA, shares insights on his latest research on investment horizons, serial correlation, and better retirement portfolios. David discusses the impact of time and inflation on optimal portfolio construction and makes a case for including commodities in portfolios. Listen now to learn more about his findings and insights into retirement planning strategies. Read the full paper here: https://cfainst.is/4eW9BTp.

In the wake of the FTX debacle, investors in cryptoassets have seen the need to critically reassess and strengthen their due diligence and risk management processes, and for regulators globally to provide greater clarity and consistency in regulating the space. In this episode, Mike Wallberg, CFA, and Martin Leinweber, CFA, Digital Asset Product Strategist at MarketVector Indexes, discuss the  lapses in investors' due diligence with regard to FTX, the role and valuation of cryptoassets in balanced portfolios and diverse ways in which investors can invest in the space, beyond cryptocurrencies.

Read the Report: Cryptoassets: Beyond the Hype

Online Course: DeFi: Introduction to Blockchain and Cryptocurrency

Thank you for listening, if you enjoyed this episode please tell a friend and be sure to leave a review. To find the full line-up of CFA Institute podcasts, visit https://cfainst.is/podcasts.

Geopolitics, demographic trends, and geography are re-shaping the world order and driving changes in global economic power and the free trade system we have known in the recent past. Our host, Mike Wallberg, CFA, sits down with geopolitical strategist, Peter Zeihan, to discuss his new book, The End of the World is Just the Beginning.  In this wide-ranging conversation, Zeihan maps out what the next world order will look like, explores how global shifts will shape investment opportunities and risks over the short and medium term, and discusses why inflation is rooted in the labor situation and is likely to persist longer than many expect.

Thank you for listening, if you enjoyed this episode please tell a friend and be sure to leave a review. To find the full line-up of CFA Institute podcasts, visit https://cfainst.is/podcasts.

A Three-Component Approach to Stock and Bond Picking.

As central banks swung from QE to QT this year, the withdrawal of liquidity has been a major component in exacerbating stock market declines and bursting of bond market bubbles. Mike Wallberg, CFA, speaks with George Cipolloni, CFA, Portfolio Manager and co-leader of the balanced income strategy at Penn Mutual Asset Management, about the role liquidity has played in recent years to raise stock and bond market valuations. George also discusses his firm's three-lever methodology to identify fundamentally strong investments that will thrive as the liquidity tide goes out.

"Risk" in investment management has many definitions and dimensions. For investors, it's not only important to quantify total portfolio risk, but also to go beyond to determine the portfolio's risk and return drivers and different sources of risk. Mike Wallberg, CFA, and Reshma Rajagopalan, CFA, Quant & Analytics Specialist at FactSet, discuss how risk budgeting, risk modeling, and risk assessment tools add value in the portfolio management process and can help investors stick to their investment plan and allocations, especially through turbulent periods, to achieve better performance outcomes.

ETFs have been popular among investors for many years given the tax advantages, efficiency, and transparency afforded by the ETF structure, but it was regulatory changes implemented in 2019 that leveled the playing field for the issuance of active ETFs. Since then, more active managers, including traditional mutual fund firms, have been bringing actively-managed ETFs to market. Our host, Mike Wallberg, CFA, speaks with Steve Cook, Managing Director and Head of ETFs at Harbor Capital Advisors, about the evolution of active ETFs in the marketplace and discusses the firm's process of creating ETFs that solve investors' problems, using the firm's inflation-hedging ETF as an example. 

An emerging and critical application of data science in the asset management industry is the use of artificial intelligence and machine learning to support both the art and science of fundamental investing. Arezu Moghadam, Managing Director and Global Head of Data Science at JP Morgan Asset Management, speaks with host, Mike Wallberg, CFA, about how her team applies AI and ML to help the firm's portfolio managers make faster and smarter decisions by separating signal from noise in the massive volumes of structured and unstructured data they analyze. She discusses how AI and ML can create efficiencies, reduce bias, and uncover new investment opportunities and offers advice to early career investment professionals aspiring to master ML and AI applications in the field of investment management.

The Journey to Leading a Global Investment Firm

Leading an investment firm, regardless of size, requires a combination of soft skills — empathy and understanding of what motivates people — and a breadth of management experiences built over time. In this episode, Mike talks with a respected leader of a global investment organization, Richard Brandweiner, CFA, CEO of Pendal Australia, about his unique career path and the important leadership characteristics he honed along the way, including service to others, showing humility, building trust and relationships across an organization, bringing diverse teams together for better decision making, and always trying to see the world through the lens of the client. Richard also discusses the recent proposal from Australian fund manager, Perpetual, to acquire Pendal and his priorities as CEO in managing the firm through this combination.

How Asset Owners are Using DEI Metrics in Manager Selection and Investment Decision Making

Diverse investment teams outperform on many levels.  Having a dedicated DEI strategy and culture at your investment firm can not only enhance investment performance, but also can contribute to significant improvements in risk management, talent acquisition, and employee retention. Jason Lamin, Founder & CEO, Lenox Park speaks with host Mike Wallberg, CFA, about what asset owners are asking for in terms of DEI metrics and benchmarks and the up-and-coming analytical tools available for peer comparisons by asset classes, regions, and more.

Aligning Client Objectives with Portfolios

Demand for impact investments has never been higher among high net worth clients, but capital allocation to impact strategies is still a small fraction of demand.  How can advisors help their clients align objectives, build portfolios and invest in solutions to societal and environmental challenges and provide attractive returns?  Adam Rein, Co-founder, President and CIO of CapShift discusses the tools, platforms and frameworks for advisors to help navigate the impact investment landscape.

Matthew Hougan and David Lawant from Bitwise, the world's leader in crypto index funds, join Mike to talk about the current state of crypto currencies in 2022. They talk about market fundamentals, valuing crypto assets in the current volatile market, what has changed, and how to approach these assets going forward.

-show notes-

In this episode of the Enterprising Investor podcast, host Mike Wallberg, CFA, interviews Alfonso Ricciardelli, CFA, about alternative credit. Alfonso co-edited "An Introduction to Alternative Credit" for the CFA Institute Research Foundation. Mike and Alfonso discuss the motivation behind the paper and the importance of expanding access to retail investors for alternative credit products. Tune in to learn more about this niche area of finance!

Financial advisors quickly embraced and implemented new technology and tools to bridge performance reporting and communications with clients during the pandemic. But as our guests, Ian Robertson, CFA and Sameer Somal, CFA tell us, continuing to build on relationships, fostering trust, providing superior communication, and more comprehensive advisory services are now premium differentiators for advisors. Join us to discuss the future of work in financial advisory services and learn how you can skill up to better serve your advisory clients.

Bios:

Sameer Somal, CFA, CFP, CAIA 

https://www.linkedin.com/in/sameersomal/
Sameer serves as Chief Executive Officer for Blue Ocean Global Technology and is co-founder of Girl Power Talk. He is an active member of the Future Business Leaders of America, the Society of International Business Fellows, and is a board member for the Future Business Leaders of America-Phi Beta Lambda, and formerly a member of the CFA Institute Seminar for Global Investors Board of Regents. He is a key contributor to numerous volunteer agencies across a wide range of initiatives, and he has dedicated countless hours to developing leaders across the globe. Adding to his long list of competencies, he is a compelling author and keynote speaker.

Ian Robertson, CFA, MBA, MA 
https://www.linkedin.com/in/ian-robertson-0636901/

Ian is a Vice President, Director, Portfolio Manager and member of Odlum Brown Limited's Executive Committee. He is a regular speaker and writer on investment issues.
Ian holds the CFA designation, which focuses on global investment knowledge, professional standards and ethics, as well as the Responsible Investment Advisor Certification (RIAC), which focuses on the integration of environmental, social and governance (ESG) factors in the selection and management of investments. Combining his strong interest in the impact of ESG on corporate strategy and valuation, and his commitment to providing clients with leading-edge investment insight, Ian is pursuing his DPhil (PhD) in responsible investment on a part-time basis at the University of Oxford.
Prior to joining Odlum Brown in 1997, Ian spent five years with the federal government, where he held several positions with a financial or economic focus – including postings in Ottawa with the Department of Finance and the Department of Foreign Affairs

Related links:

Explore a wide range of courses specifically designed for investment professionals such as Data Science and DeFi. Explore online, self-paced learning that fits around your day. Courses are open to the public and member discount is available. https://cfainst.is/GAPod

https://girlpowertalk.com/
Girl Power Talk--We believe that achieving true gender equality requires a radical shift in the way young women are mentored in the workplace. At Girl Power Talk, we are passionately dedicated to empowering women–as well as men and nonbinary individuals–with opportunities to learn confidently, feel valued, and build a career full of purpose. Vision: Girl Power Talk is passionate about elevating young women to become global leaders who are recognized for their myriad of talents and contributions. We believe that through education, opportunity, and the support of empathetic male allies, girls and women will advance beyond gender roles, aspire to new levels of achievement and reshape our society. Through our innovative ecosystem, we are changing the world of work for the better and providing all voices equal weight in a new narrative defining the future.

Ever considered investing in art as an alternative asset class? Allen Sukholitsky, CFA, joins us to discuss his role at Masterworks — an asset management firm that specializes in art as an investment vehicle. From how the concept of fractional shares of art really works to why it can be a great inflation hedge, this episode is a fascinating look into an often mysterious asset class.

What Bonds Can Tell Us About Equity Valuations

While rising interest rates have had serious consequences for investors, there are some stocks that are performing better in the current financial climate. John Tobin, CFA, returns to the show to discuss the state of dividends and "equity duration," and what that means for dividend payers versus non-dividend payers in a rising rate environment.

Energy price volatility has taken investors on quite a roller coaster ride over the past few years. From historic lows at the onset of the global pandemic to the surging highs seen in recent weeks, it begs the question if what we're witnessing in the energy sector will continue, and for how long? Kathryn Downey Miller, CFA, VP of Energy Strategy at FactSet, helps shed a light on power, oil, and natural gas sectors while discussing the intricate nuances that have critical impacts on energy markets and what it means for investors.