Enterprising Investor

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.

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.