The Future of Investing

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  • date post

    18-Jul-2015
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    Business

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Transcript of The Future of Investing

  • Consider this

  • 40 years ago you could not buy a Currency Futures Contract

  • 20 years ago Collateralized Debt Obligations did not exist.

  • 2 years ago Subprime could be spoken about on Wall Street

  • Things change.

  • Fundamentals

    #1 Failing

  • serious panic. Economic data causes

  • Equities drop to zero.

  • Communication is global and extremely fast.

  • #2 Growing complexity

  • Individual investors are trading online.

  • Information Overload

  • #3 Disappearing Borders

  • Source: IMF

    Global Economic Output in 2000

    37%

  • Source: IMF

    Global Economic Output Today

    45%

  • Emerging markets have had a growth explosion.

  • Commodity markets are exploding.

  • #4 Greater Transparency

  • Better software can help investors visualise risk.

  • Harry Markowitz Modern Portfolio Theory

  • Banks are scared as they hold many custom over-the-counter assets.

  • Dont look to regulators

  • New financial products will be less arcane.

  • #5 Lack of Education

  • People think options are risky.

  • Managed futures are almost unknown.

  • CISDM CTA Index

    53%

    Correlation is -0.08 to MSCI World

    MSCI World Index

    42%

  • Individual investors will be capable of managing their own affairs.

  • Death of the Mutual Fund

  • Mindset is 70% of success.

  • Multi-Family Office Investment Strategies Research

  • Murray Priestley +852 8122 9446

    http://murraypriestley.com/