Showing posts from October, 2019

CFA Series - ETF opportunities and risks

ETF opportunities and risks One great thing about studying for the CFA is that you can tie the curriculum syllabus to real life examples and observe the motion in progress. I had a tendency to put in considerably more time and effort to studying certain topics like Real Estate (and REITS) , corporate finance, Equity investing and ETFs compared to the other topics combined.  As an enthusiast in ETF investing, I have significant holdings in STI ETF and is eager to gain knowledge and exposure to global ones. One key limitation about the CFA is that it is only good at explaining historical examples and is backward looking . Elaborate discussions about macroeconomic models and DCF will not be able to explain the implications of QE and negative interest rates, and the appropriate discount rates to apply. Howard Marks Latest <Mysterious> Memo explores the implications of negative I/R on risk seeking behavior, and inverted relationships whereby historical models may no longer predic