State of the Art of Investing: Issue 6
Benjamin Graham once said that the true investment professional would "develop a more professional attitude towards his work and a keener interest in maintaining and advancing the standards of his calling." Those standards continue to advance, as most investment professionals can attest.
To keep the CFA program current and relevant, CFA Institute continuously interviews investment management practitioners, employers and regulators through its practice analysis. Recent trends identified include:
Risk factor based asset allocation
The effect of the low/negative interest rate environment
The effects of pension funding shortfalls
Increasing allocations to alternative investments
The importance of understanding financial market history
The role of ESG factors in investing
- A stable financial system is in your clients' interest
The increasing need for private wealth management
- Risk management for private wealth clients
The rise of passive vs. active investing
- Nearly half of equity mutual funds fail to survive 10 years
- What does beating a benchmark have to do with meeting client objectives?
The need for investment professionals with soft skills
- If you don't have good people and communications skills you will struggle as an advisor
- Firing people is the leading cause of euphemism
The role of "big data" and Fintech in the investment process
- Trading algorithms, information extraction, and other uses of big data in fintech
These seem like good places to start, and as I advance my own knowledge I will try to share links to interesting resources in posts like this one. Opinions expressed are mine, not those of CFA Institute. Whether you find them useful or can suggest improvement, please let me know (both so I can learn more and so I can make these posts more useful to others.)
Anything else I should be reading?
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