tactical asset allocation


Why we cannot resist tactical asset allocation

“We cannot suppress the powerful intuition that what makes sense in hindsight today was predictable yesterday. The illusion that we understand the past fosters overconfidence in our ability to predict the future.” Daniel Kahneman, Nobel Prize Winner, in Thinking, Fast and Slow. “The only value of stock forecasters is to make fortune tellers look good.” […]
Hedge Funds

Mark Delaney fears a stampede out of equities

A market wide deleveraging out of equities could be the next big investment risk facing superannuation funds, Mark Delaney, chief investment officer of Australian Super has warned. Speaking in a debate on dynamic and tactical asset allocation strategies, Delaney saw the risk caused by the similarity of investor positions. “We’re still overweight stocks. Everyone’s in […]
Investment Strategy

“Outcome-oriented” investment solutions

An environment of low prospective investment returns and relatively high volatility demands more refined, “outcome-oriented” investment solutions, according to the global chief investment officer of Russell Investments, Pete Gunning. Institutional investors and financial planning firms, Gunning says, need to have at their disposal a far wider range of investment options – “componentry”, in Russell’s terms […]