Podcasts about s p dow jones indices

Steve Rick, chief economist at TruStage, says that he has lowered his forecast for economic growth to 0.5 percent, while raising his forecast for inflation to 3.5 percent; that combination means stagflation, and it's starting to happen now and could turn into recession if the growth slowdown is worse than expected. Rick notes that "No one wins trade wars" and notes that if the current situation plays out into one, that trade problems triggering huge downturns would seem to be a classic 100-year event. While he says the damage can be averted if economic policy changes are softened or mitigated, Rick says he worries that the impacts of current events could last as long or longer than the economic impacts of Covid. Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, discusses the unprecedented action in the Dow Jones Industrial Average on April 17, when United Healthcare dropped 22 percent and, by itself, caused a big drop in the benchmark. He analyzes what that means for the Dow as a benchmark, but also talks index construction — and how investors should consider benchmarks — in light of the rapid growth of the Mag 7 stocks relative to the rest of the market. Plus Chuck answers a listener's question about how to sell some gold coins they received as an inheritance.

In this episode, Joe is joined by Andrew Schlossberg, President & CEO at Invesco, and Dan Draper, CEO at S&P Dow Jones Indices. Topics included Andrew's journey from Invesco's corporate training program to CEO, Dan's perspective on the evolution of index-based investing, Andrew's insights on AI integration in asset management, and Dan's view on the future of the indexing business. The conversation also covered major industry trends, leadership advice for aspiring professionals, and experiences with football culture in London.

The majority of active managers underperform their benchmarks - but why?   In this episode of the Global Thinking Podcast Rob sits down with Dr. Joseph Nelesen, Head of Specialists, Index Investment Strategy at S&P Dow Jones Indices, to unpack the 2024 SPIVA Report—the definitive study comparing active fund managers to their benchmarks.   The discussion explores how most active managers have underperformed their benchmark, the critical role of survivorship bias, and the impact of fees and market conditions on long-term performance. Joe shares eye-opening statistics including how almost half of all funds over a 10 year period cease to exist and the fact that zero managers maintain their top quartile ranking over a five-year period.   Rob and Joe also dive into ETF investing, analyzing the trends shaping active management today and what investors should consider when building portfolios. Whether you're an investment professional or an individual investor, this conversation delivers valuable insights into the ongoing debate between active versus index strategies and how market efficiency may be impacting your investment decisions.   https://www.indexologyblog.com/2025/01/08/shifting-tides-concentration-dispersion-and-the-sp-500-risk-landscape/     Chapters   00:00 Introduction to Global Thinking Podcast 01:07 Meet Dr. Joseph Nelesen 05:53 Understanding the SPIVA Report 13:15 Key Findings from the 2024 Report Card 19:04 The Challenge of Persistence in Active Management 25:54 Trends in Active Management and ETF Usage 27:57 Exploring Fixed Income Strategies 30:41 The Dynamics of Equal Weighting in S&P 500 31:55 Active vs. Passive Investing: A Deep Dive 35:06 The Role of Fees in Investment Performance 38:27 Understanding Long-Term Underperformance Trends 39:36 Due Diligence in Selecting Active Managers 41:52 The Evolution of Market Efficiency 44:22 Personal Insights and Recommendations   Disclosures: https://forstrong.com/disclosures/  Global Thinking Podcast Series - https://forstrong.com/podcast/  Global Thinking Insights - https://forstrong.com/insights/  Who is Forstrong Global - https://forstrong.com/who-we-are/  Ask Forstrong - https://forstrong.com/category/ask-forstrong/  Invest With Us - https://forstrong.com/invest-with-us/         

By day, Dr. Disha Spath is an internist caring for her patient's physical and mental health.  By night, my she's known as The Frugal Physician and hosts the Finding Financial Freedom podcast. In this episode, Disha shares her personal journey from financial struggles to becoming an advocate for frugality and financial independence. She also discusses the differences between frugal and cheap, the gender wage gap, and strategies to manage income disparities in relationships.  *Trigger warning: There are brief mentions of suicide in this episode.  

The role of the CEO: In this particular case, it means leading a complex global organization. One with employees all over the world, interacting with a robust board, and countless other stakeholders. For Dan Draper, the CEO of S&P Dow Jones Indices, the job means that, and more. Earlier this month, Draper was the keynote speaker for “From Dog Street to Wall Street,” an annual event hosted by the Boehly Center for Excellence in Finance at William & Mary School of Business. Afterward, he joined us to discuss the many aspects of the CEO's role, including stakeholder management, understanding the importance of data, and doing things the right way. Learn how the Raymond A. Mason School of Business at William and Mary can help you and your organization develop your top talent through customized executive education and professional development programs. Visit us at www.wmleadership.com. Thank you for listening.

Join us for the finale of Sustainability shapers as we engage in a compelling conversation with Maya Beyhan, Global Head of Sustainability, Index Investment Strategy at S&P Dow Jones Indices. Maya takes us on a journey from her roots in portfolio strategy to her current expertise in sustainability indices. Highlighting how running has enhanced her resilience in this role. Discover the pivotal role of natural resources, notably carbon credits, in achieving the net-zero energy transition. As Maya underscores the importance of collaboration and education in propelling sustainable investment forward. Related resources: S&P SPIVA Sustainability scorecard

Sheraz Mian, director of research at Zacks Investment Research -- which focuses on earnings results for much of its forecasting -- says that with about one quarter of companies having now reported earnings results for 2023, the numbers look like "more of the same, more of the good stuff." He doesn't expect growth to be impressive this year, but there's also not much negative guidance or gloomy outlooks from companies, and he expects that mixed but largely benign environment to last through the year. Meanwhile, Hamish Preston, director of U.S. equity indices for S&P Dow Jones Indices, talks about the market's recent record highs and what they portend for the year ahead, noting that In years when the S&P 500 hits a new peak in January, gains tend to be higher than normal for the year, an average gain of roughly 10.5 percent compared to years when the market fails to reach record levels until later. Plus, David Trainer of New Constructs puts a large-cap fund that gets a four-star rating from Morningstar into the Danger Zone for holding too many dangerous stocks, and Lynette Khalfani-Cox discusses her new book, "Bounce Back: The Ultimate Guide to Financial Resilience."

Veteran technical analyst Martin Pring of Pring Research is "very optimistic over the next 12 months" because the stock market's bounce since October "looks like the beginning of a bull market," with expanding breadth and economic indicators turning up to where indicators are bullish for stocks and bonds now. Pring makes an educated guess that the market could run up to 5,400 on the Standard & Poor's 500, but notes that if the indicators change -- which he would expect after the election next fall -- the bull market could end quickly. In The Big Interview, Alex McGrath, chief investment officer at NorthEnd Private Wealth, says that while the market has been rebounding, it hasn't ecaped concerns about a recession and about the future financial health of the consumer, so he's rotating into defensive positions and looking to be opportunistic in 2024. Also on the show, Howard Silverblatt, senior index analyst for S&P Dow Jones Indices discusses how companies got more cautious late in 2023 about committing to dividend increases. Plus, Nancy Prial of Essex Investment Management and the 1290 Essex Small Cap Growth Fund talks small-cap stocks in the Market Call.

As we know, I'm a huge advocate for index investing and today on the More Money Podcast I have two guests who are sharing their expertise on the subject including some of the pitfalls of investing in actively managed funds. Anu Ganti and Joseph Nelesen, both Senior Directors of Index Investment Strategy at S&P Dow Jones Indices, are joining me today and I'm telling you, this episode is chock-full of valuable investing info! Anu is a CFA charterholder and holds her MBA in finance and economics from Columbia Business School, as well as her bachelor's degree in finance and marketing from NYU's Stern School of Business. She is often sharing her expertise with both print and broadcast media outlets and helps lead the index investment strategy team in providing research and commentary on the entire S&P DJI product set, including U.S. and global equities, thematics, commodities, fixed income, and sustainability indices. Prior to joining the team, Anu worked in the asset management space, completing a post-MBA rotational program at Russell Investments within their fixed-income research and trading divisions and also worked as a portfolio manager focusing on emerging market equities at Parametric Portfolio Associates (a subsidiary of Eaton Vance). Joseph holds a Ph.D. from Northwestern University, an MBA from the Kenan Flagler Business School at University of North Carolina, and a Bachelor of Arts with honors from the University of California at San Diego. He also helps lead the index investment strategy team, but prior to working at S&P DJI he headed iShares Institutional Factors Strategy at Blackrock and held roles in exchange-traded product research and development. Joseph also previously worked in mergers and acquisitions and corporate investment banking with Citigroup and Bear, Stearns & Co. In this episode, Joseph and Anu challenge the myth that indexing only yields average investment returns and share how SPIVA measures actively managed funds against their index benchmarks worldwide using the data and insights they've gained over the past 20 years. This episode is full of some great information and will definitely be perfect for anyone wanting to understand why index investing is a tried and true long-term investment strategy. For full episode show notes visit: https://jessicamoorhouse.com/370

Understanding market efficiency is an important part of investment decision-making. It can help investors to identify the most appropriate investment strategies and develop realistic expectations for their returns. In this episode of the Rational Reminder Podcast, we sit down with Professor Burton Malkiel, the renowned economist, and author of the classic investing book A Random Walk Down Wall Street. Professor Malkiel is a distinguished figure in the world of economics and academia. He holds the prestigious title of Chemical Bank Chairman's Professor of Economics Emeritus and Senior Economist at Princeton, where he has made significant contributions to the field over the years. In our conversation, we discuss Professor Malkiel's views on the stock market, the efficient market hypothesis, how behavioural finance relates to investing, and why index funds should be at the core of every portfolio. Throughout the episode, Professor Malkiel shares his insights on a wide range of topics related to personal finance and investing, including the benefits of index funds, the dangers of active stock picking, the impact of fees and taxes on investment returns, factor investing, and expensive asset classes. He also discusses research on socially responsible investing and how investors can incorporate ethical considerations into their portfolios without sacrificing performance. In this episode, listeners will gain a better understanding of the vital principles of investing and how to apply them to achieve their financial goals. Whether you're a novice investor or an experienced pro, this episode offers valuable insights and advice from one of the most respected economists in the field, Professor Malkiel. Key Points From This Episode: Professor Malkiel explains the efficient market hypothesis and what the term “efficient market” means. (0:03:42) What the media tends to get wrong about the concept of market efficiency and the mathematical theory behind a random walk market. (0:07:04) We discuss investing in index funds rather than actively managed strategies. (0:09:44) How his book, Random Walk, was received by professionals and academics in the industry (0:13:08) Hear about the inspiration behind the concept covered in his book, and how his investment advice has changed over the last 50 years. (0:19:18) Why index funds have become widely accepted, and the difference between investing and speculating. (0:23:38) He unpacks why past market bubbles are vital for managers to understand and shares some wise words for those who want to participate in market speculation investing. (0:28:21) How the existence and persistence of bubbles throughout history relate to markets being efficient. (0:32:10) © 2023 Rational Reminder Podcast 1 RRP 252 Show Notes Find out how the multiple, non-diversifiable risks in today's financial markets impact the advice in his book, and learn about factor investing. (0:35:42) He shares advice and insights for people looking to invest in cheaper funds and his perspective on trending investment strategies. (0:37:55) Learn how the general findings from behavioural finance influence his advice on investing in index funds. (0:41:33) We explore the value of risk parity strategies and the problem with backtests, and he shares his view on expensive asset classes. (0:44:09) What impact super-low bond yields had on the return of bonds, and whether you should focus on the value or yield. (0:54:16) The importance of saving as opposed to an optimal investment strategy to investor outcomes. (0:57:56) Insights into investing according to your desired outcomes and whether Professor Malkiel thinks it is better to rent or own a home. (1:03:55) We discuss inflation and possible future trends and the role of financial planners and investment advisors. (1:10:29) Hear his concerns regarding the growth of index fund assets. (1:14:52) Details about his book writing journey and his definition of success. (1:18:46)   Links From Today's Episode: Burt Malkiel — https://jrc.princeton.edu/people/burton-g-malkiel Wealthfront — https://www.wealthfront.com/ Theravance Biopharma — https://www.theravance.com/ Genmab A/S — https://www.genmab.com/ Rebalance IRA — https://www.rebalance360.com/ A Random Walk Down Wall Street — https://www.amazon.com/Random-Walk-Down-Wall- Street/dp/0393352242/ Princeton University — https://www.princeton.edu/ The Yale School of Management — https://som.yale.edu/ Vanguard — https://investor.vanguard.com/corporate-portal/ Trillions — https://www.amazon.com/Trillions-Renegades-Invented-Changed-Finance/dp/ 0593087682 S&P Dow Jones Indices — https://www.spglobal.com/spdji/en/ S&P Dow Jones Indices SPIVA — https://www.spglobal.com/spdji/en/research-insights/spiva/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder- podcast/id1426530582. 
 Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

According to S&P Dow Jones Indices research, the S&P/ASX 300 has a trailing 12-month dividend yield of 4.5%. This far surpasses the dividend yield of our developed market peers, with the UK boasting a 3.7% yield and the US just 1.7%.  Last year, total dividends paid out to investors totalled a record $113 billion. S&P Dow Jones analysts found that our market's dividend pool has grown at a compound annual growth rate (CAGR) of 6.5% over the past 10 years - far higher than the RBA's inflation target of 2%.  In fact, 148 companies increased their dividends in 2022, despite the S&P/ASX 300 falling quite deeply into the red. In total, 216 companies paid out dividends last year.  As it currently stands, there are 32 stocks within the S&P/ASX 300 with trailing yields higher than the long-term average market return of 8%. Without stating the obvious, this is far higher than the Australian market's average of 4.5%.  As the saying goes, when something looks too good to be true, it usually is.  So in this episode, Livewire's James Marlay was joined by Antares Equities' Andrew Hamilton and Plato Investment Management's Peter Gardner for their analysis of the equity income spectrum, as well as the stocks they believe can continue to pay out sustainably high dividends from here.  Plus, because we all know this anonymous writer loves a dash of drama, we asked Peter and Andrew to each name one double-digit yielder likely to face dividend-paying challenges from here.  Note: This interview was filmed on Wednesday 3 May 2023. You can read an edited transcript below:  https://www.livewiremarkets.com/wires/6-stocks-with-sustainably-high-dividends-and-2-on-the-way-south/ 

In this Episode, James Parkyn & François Doyon La Rochelle discuss the following subjects:  In the news: Global Banking Solvency   Main Topic : Update on Active Vs. Passive  In this episode, we invite our listeners to check our latest feature below. For the first time we share the Podcast Script which was a request from some of our audience.    Links: - The Grumpy Economist: How many banks are in danger? (johnhcochrane.blogspot.com)  by John Cochrane  -The Non-Bailout Bailout – Foreign Policy  by Adam Tooze, Podcast “Ones & Toozes”  -How Bank Oversight Failed: The Economy Changed, Regulators Didn't - WSJ by Andrew Acherman, Angel Au-Yeung & Hannah Miao  -Chief Risk Officer: The Most Thankless Job in Banking - WSJ by Ben Cohen  -Foolproof: Why Safety Can Be Dangerous and How Danger Makes Us Safe: Ip, Greg: 9780316286046: Books - Amazon.ca by Greg IP  -The Price of Time: The Real Story of Interest: Chancellor, Edward: 9780802160065: Books - Amazon.ca by Edward Chancellor  -Episode 44: Central Banks and Recessions — Capital Topics by James Parkyn & François Doyon La Rochelle  -When Headlines Worry You, Bank on Investment Principles | Dimensional by Dimensional  -What Gets Lost When You Rescue Markets - WSJ by Jason Zweig  -It Wasn't Just Credit Suisse. Switzerland Itself Needed Rescuing. - WSJ by Margot Patrick, Patricia Kowsmann, Drew Hinshaw & Joe Parkinson  -SPIVA U.S. Year-End 2022 - SPIVA | S&P Dow Jones Indices (spglobal.com) by Tim Edwards, Anu R. Ganti, Craig Lazzara, Joseph Nelesen & Davide Di Gioia  -Active Funds Continue to Fall Short of Their Passive Peers | Morningstar by Bryan Armour    Read The Script:  Introduction:  François Doyon La Rochelle: You're listening to Capital Topics, episode #51!  This is a monthly podcast about passive asset management and financial and tax planning ideas for long-term investor.   Your hosts for this podcast are James Parkyn and me François Doyon La Rochelle, both portfolio managers with PWL Capital.  In this episode, we will discuss the following points:  For our first topic, we will discuss news on bank solvency.   And next, for our main topic, we will give you an update on the results of active management versus passive for 2022.   Enjoy!    In the news: Global Banking Solvency:   François Doyon La Rochelle: Our first topic today is news about Bank Solvency. James, you will address the major news story of the failure of Silicon Valley Bank, also known by the acronym SVB, in the US and the fear of contagion spreading to other US and International banks, especially after the news of the forced merger of the Credit Suisse bank with UBS in Switzerland. Credit Suisse bank was among the top 30 globally systemic important banks. Now, many of our Listeners are wondering: Is this the beginning of a major Banking crisis as we saw 15 years ago in 2008-2009 with the Global Financial Crisis?  James Parkyn:   I can understand why our Listeners and indeed most Investors would be very worried about this news. It is everywhere in the financial press. You can't escape it. In this segment, we will try to summarize what happened and what is important for Investors to know and what is noise so they avoid making bad decisions that could negatively impact their Long-Term Investment Plan.  François Doyon La Rochelle: So, let's start with SVB in the US. What happened and why did it fail so quickly?  James Parkyn: The story of what happened is not yet fully known. What we do know so far is that the collapse of Silicon Valley Bank was driven in part by assets it held (mostly high-quality US Treasury Bonds) that lost value when interest rates rose from near zero.    A mismatch between its assets and liabilities caused a liquidity trap. Events moved so rapidly that it kind of resembled the storyline in the classic Christmas Movie “It's a Wonderful Life” by Frank Capra starring Jimmy Stewart. Most Listeners know the storyline where Jimmy Stewart's brother in the movie lost the deposit money of the Bailey Building and Loan in a deposit-envelope mix-up at the bank owned by the dreaded Mr. Potter. Very quickly news spreads in the small town that the Bailey Building and Loan were insolvent, and customers rushed to withdraw their deposits.     François Doyon La Rochelle: Yes, this movie is one of the most loved of all time. It also perfectly illustrates a classic bank run.  James Parkyn: Economist John Cochrane in his Blog titled “How many banks are in danger?” on March 14, 2023, explains it best: “SVB failed because it funded a portfolio of long-term bonds and loans with run-prone uninsured deposits. Interest rates rose, and the market value of the assets fell below the value of the deposits. When people wanted their money back, the bank would have to sell at low prices, and there would not be enough for everyone. Depositors ran to be the first to get their money out.” And there you have it, that's what happened to SVB, a classic run on the bank.  François Doyon La Rochelle: To better understand, we must remember the economic picture prevailing in 2022 and what precipitated this. Last year, the key issue for both the economy and the banks was inflation, which jumped above 5% after decades of around 2%. The Fed had until mid-2021 to signal it would hold rates near zero for years then shifted gears dramatically and raised them at the sharpest pace since the early 1980s. Many investors, including SVB, were caught unprepared for this new reality of higher rates.    James Parkyn: The mechanics of Bond investing is that rising rates cause bond prices to fall, especially bonds that don't mature for many years. It has been widely reported that SVB favored longer-term bonds for their additional yield. A fall in the value of a bank's bond holdings could in theory reduce their capital, the cushion between assets and liabilities that absorbs losses.  François Doyon La Rochelle: How did the Regulators let this happen?   James Parkyn: In the WSJ on March 24th, 2023, in an article entitled “How Bank Oversight Failed: The Economy Changed, Regulators Didn't”. The article states: “As interest rates surged after years of quiescence, regulators didn't fully anticipate the hit banks would take to the value of their bond holdings.   The Fed as late as mid-2021 expected the era of ultralow rates to continue. Not until late 2022, when rates had already risen substantially, did regulators warn SVB that its modeling of interest-rate risk was inadequate.”  François Doyon La Rochelle: So, can we say the Regulators were not doing their job?  James Parkyn: A second factor was the failure to appreciate the danger where SVB became dependent on very large deposits. and these deposits could be withdrawn virtually any time with today's technology.   The WSJ article goes on to say, “Banks had come to depend more on such deposits. Regulators acknowledge they didn't stress such a concern because the big deposits were from SVB's and Signature's core customers, who, it was thought, would stick around.    François Doyon La Rochelle: The WSJ article goes on to say: “… deposits fled far faster than had ever happened before, aided both by social media-fueled fear and by technology that allowed people to move vast sums with a few taps on a smartphone.” I find it hard to believe that a large Bank with a reported USD 209 Billion in Assets would fail at such elementary risk management. Can we say it was a sort of perfect storm of events?   James Parkyn: I don't believe it is. We often say in our Podcast, we don't know what we don't know, and a Black Swan type of event is not forecastable. But this is just a case of bad risk management.   François Doyon La Rochelle: The economist John Cochrane in his March 14th Blog seems to agree. He stated: “In my previous post, I expressed astonishment that the immense bank regulatory apparatus did not notice this huge and elementary risk. It takes putting 2+2 together: lots of uninsured deposits, and big interest rate risk exposure. But 2+2=4 is not advanced math”.  James Parkyn: The storyline gets better. Bank regulations in developed countries like Canada and the US require that they have a senior executive in a role called Chief Risk Officer or CRO. It is unbelievable but at the time of failure, SVB had no CRO.    Journalist Ben Cohen of the WSJ wrote an Article on March 23, 2023, titled “It's the Most Thankless Job in Banking. Silicon Valley Bank Didn't Fill It for Months.” He wrote: “Silicon Valley Bank's lack of an executive in that role for eight critical months is a reminder that risk doesn't have to be excessive or exotic to be existential. SVB's alarming exposure to rising interest rates wasn't hard to see coming and should have been easy to hedge against. It remains flabbergasting how a bank that served the most innovative corner of the economy could have been doomed by a basic mismatch of assets and liabilities. But tech's favorite bank failed because its risk management did first.”  François Doyon La Rochelle: But the SVB would've had other risk-reporting regulatory obligations. Ultimately, would the Board of the Bank be accountable?  James Parkyn: Yes, I agree even with no Chief Risk Officer, at the very least there should have been an acting CRO, and regulations would require regular reporting to the board on Risk management. Ben Cohen of the WSJ said it best: “Of course, the presence of a Chief Risk Officer isn't necessary to know when the Federal Reserve hikes rates and regulatory filings suggest SVB was aware of its vulnerabilities long before the run on the bank: The board's risk committee met nearly as many times last year (18) as it did in the previous three years combined (19).” So here again we see a big-time failure of basic governance processes.  François Doyon La Rochelle:  So, what about the Credit Suisse Bank and the merger with UBS? Is the situation like SVB? What's the impact of Credit Suisse and UBS merging?  James Parkyn: Economic Historian Adam Tooze in his Podcast Ones and Toozes on March 17th, 2023called it a “Confidence shock that killed Credit Suisse”. Regular listeners will remember from Podcast #44 that he wrote the highly regarded book “Crashed” detailing what happened in the banking system during the global financial crisis. Unlike SVB it was not a liquidity crisis but a counterparty crisis. Other global banks and large customers were losing faith in Credit Suisse's ongoing viability.      This is a major issue for Switzerland and its role in the global banking system. A recent WSJ Article titled “It Wasn't Just Credit Suisse. Switzerland Itself Needed Rescuing”. For any country, it would be a financial emergency. For Switzerland, the stakes verged on existential. Its economic model and national identity, cultivated over centuries, were built on safeguarding the world's wealth. It wasn't just about a bank. Switzerland itself needed rescuing.  François Doyon La Rochelle: The Credit Suisse bank crisis added the Global contagion dimension to this crisis. For the Swiss, it threatens an economic model and national identity built on safeguarding the world's wealth.  James Parkyn: Credit Suisse, the second-largest Swiss bank, and Top 10 Global Bank, has had risk management issues for over a decade. Adam Tooze in his March 17th Podcast called it a “Confidence shock that killed Credit Suisse”. Now that Credit Suisse and UBS, the larger Swiss bank, have merged, the question is the combined bank, with over 50% of the Swiss banking market, too big to bail?   The WSJ reported on March 22nd, 2023: “Its banking system is five times the size of its gross domestic product and larger than in most economies. UBS combined with Credit Suisse has a balance sheet twice the size of the Swiss economy.”  François Doyon La Rochelle: It is clear to me that all this turmoil will have an impact on the Central Bank's Policymaking and their inflation-fighting maneuvers of raising interest rates. The bank collapses in the United States and the emergency rescue of Credit Suisse is likely to force central banks to weigh the trade-off between systemic risks and inflation risks.  James Parkyn: Higher rates will continue to weigh on banks' balance sheets. They will also cause problems in other parts of the economy. Economic Historian Adam Tooze in his Podcast on March 17th, 2023 said “when Central banks increase interest rates, they are trying to impact inflation thru negative events. With such a rapid rate hiking cycle engineered by Central Banks, it was to be expected that negative economic shocks would happen. It was only a question of what would bend and what would break.”    François Doyon La Rochelle: What is the role of Bank Regulators in this mess?  James Parkyn: Well! you know, it seems they're always fighting the last battle with the last battle strategies and so, if you recall in our Podcast #44, we quoted Mervin King, the former governor of the Central Bank, that said: “Central Banks have to come up with new ideas and we got to forget about the mistakes of the recent past and focus on what needs to be done.” So, let's go back to Jason Zweig, who wrote in the WSJ article on March 17th “Over the past couple of decades, the Fed, the Treasury, and other authorities have stepped in time after time to stabilize the financial markets, as if failure were no longer an option. This all goes to illustrate an even bigger problem: Central authorities aren't omniscient and omnipotent, and their efforts to wring risk out of the system may make it more dangerous, not less. Even as rules have proliferated and bailouts multiplied, the U.S. stock market has suffered four crashes of least 20% since the year 2000.”  François Doyon La Rochelle: Well now we are talking about Moral Hazard.   Another quote from Jason Zweig of the WSJ: “The attempt to eradicate failure from the financial system, of course, is part of modern society's broader push to make life itself riskless and idiot-proof, with indestructible baby strollers, child-resistant drug packaging, almost self-driving cars and shoe removal at airport security.”  James Parkyn: Another WSJ Columnist Greg Ip pointed out in his 2015 book “Foolproof,”: “…making an environment feel safer can lull many people into complacency and excessive risk-taking.” I am also reading a highly recommended book by financial historian Edward Chancellor, called “The Price of Time,” a history of interest rates. This author makes the point “The attempt to control risk by lowering interest rates reduces the cost of taking risk, and so ends up increasing the aggregate amount of risk in the system.” We have talked a lot in our podcast about normalized interest rates. We have had rates that are too low for too long and too many people have taken for granted this would simply continue.  François Doyon La Rochelle: James, what is your advice for our Listener?  James Parkyn: In preparation for this Podcast, I went back to our Podcast #44 on Central Banks that we published in September 2022. The big fear last fall was about recessions and the potential impact on financial markets. We highlighted Dimensional research that showed that Markets around the world have often rewarded investors even when economic activity has slowed. Many now feel that the specter of Bank failures will reduce lending activities by banks further increasing the likelihood of reduced economic activity. We recommend that our Listeners stay disciplined in their LT Investment plan and forget about all the noise of the moment such as Inflation, Interest rates, recession, and now we can add to the list of bank failures.  François Doyon La Rochelle: Yes indeed, our regular Listeners know, this is one of our mantras as a disciplined Investor with a Long-Term Mindset you can't forecast the future.    James Parkyn: In conclusion Francois, we turn to our friends at Dimensional, they produced a great article entitled “When Headlines worry you, bank on Investment Principles.”  “While every investor's plan is a bit different, ignoring headlines and focusing on the following time-tested principles may help you to avoid making short-sighted missteps.  1. Uncertainty Is Unavoidable: uncertainty is nothing new and investing comes with risks.  2. Market Timing Is Futile.  3. “Diversification Is Your Buddy” a quote they attribute to Nobel laureate Merton Miller.  François Doyon La Rochelle: I like the following quote from this article: “When the unexpected happens, many investors feel like they should be doing something with their portfolios. Often, headlines and pundits stoke these sentiments with predictions of more doom and gloom. For the long-term investor, however, planning for what can happen is far more powerful than trying to predict what will happen.”   As usual, we will share the link with our Listeners.    Main Topic: Update on Active Vs. Passive:   François Doyon La Rochelle: For our second topic today, we will give you an update on the results of active management versus passive for 2022. I believe that by now, after all the podcasts that we have released, most of our listeners understand that we are strong believers in market efficiency and that our investment philosophy is based on the empirical evidence that using broad-based and low-cost investment passively managed products are the best way to capture market returns and increase the odds of long-term success for our clients.   James Parkyn: Correct and it's been more than 20 years now that we have adopted this investment approach based on the belief that active investing is a negative sum game. However, this does not mean that we don't question ourselves and look at the latest research papers and articles to make sure our investment philosophy is supported by evidence.   François Doyon La Rochelle: Yes, and that's why year after year we analyze the SPIVA report, from S&P Dow Jones Indices which measures the results of the S&P Indices versus active funds, and also the Morningstar Active vs Passive Barometer report which measures the performance of active funds against their respective passive peers, to see if the results for the last year were any different than in the past. Unfortunately for active managers, this year was no different than in the past, since once again active managers were not able to beat their passive comparable.  James Parkyn: This is particularly interesting after a difficult year like 2022 when stock and bond markets unusually sold off at the same time. The old narrative from active managers is that good active management will outperform passive investments during times of market volatility, so what happened?  François Doyon La Rochelle: Well, we would certainly expect given all the market volatility in 2022, that active managers would have plenty of opportunities to beat passive strategies.   James Parkyn: Effectively, we covered the major geopolitical and economic events in our podcast over the last year, but it is worthwhile to highlight some of them for our listeners to get a feel for the opportunities that active management could have exploited to generate better results. The year started with the war in Ukraine and the subsequent geopolitical turmoil, then followed multi decades of high inflation rates, and the subsequent swift and strong reaction from central banks to increase interest rates. Again, I am just highlighting the obvious here but getting back to our topic Francois, how well did active management do against passive last year?   François Doyon La Rochelle: To answer your question, James, I will base myself predominantly on the Morningstar active versus passive barometer report. This report is comprehensive as it covers nearly 8,400 actively managed funds in the U.S. with approximately $15.7 trillion of assets under management. I prefer this report to the SPIVA since it measures the rate of success of active managers against the results of actual passive funds and not benchmarks.  James Parkyn: This is an important nuance. The Morningstar report “benchmarks” reflect the actual, net-of-fees performance of investable passive funds and not simply the performance of an index that is not investible without incurring fees.   François Doyon La Rochelle: Correct James and that's a very important nuance.  Now let's look at the results. Again, based on the narrative that active managers will do better in times of market stress I think the results for 2022 are not very conclusive for active management.   Based on the 20 different investment categories reported by Morningstar only 40.5% of active managers were able to beat their respective benchmarks in 2022. This is a weaker result than in 2021, a very good year in the markets when 51.1% of active managers were able to beat their benchmarks.   James Parkyn: As you mentioned this is very interesting as it goes against the active management's narrative that they will perform better in difficult years. So out of the 20 categories, what were the best ones?  François Doyon La Rochelle: Out of the 20 different categories, 6 of them had a success rate above 50%. Meaning that in each of these 6 categories, more than 50% of the managers were able to beat their benchmarks. By way of comparison, that number for 2021 was 7. That being said, the best-performing categories in 2022 were, one, the US small value category with a 61% success rate, second, the US small growth category with a 56.9% success rate and third the world large blend category with a 56% success rate. I must mention in all objectivity that the U.S. large blend category, which is probably the largest fund category by assets under management, was also amongst the best categories in 2022 with a success rate of 54.1%. This means that 54.1% of the active managers in that category beat their benchmark last year.    James Parkyn: Now which categories fared the worst?   François Doyon La Rochelle: The worst category out of the 20 was Global Real Estate with a success rate of only 20%, it was slightly surpassed by the corporate bond category with a success rate of 22.6% and by the diversified emerging markets category with a success rate of 23.4%.   James Parkyn: What I find interesting in these results is that the highly interest-sensitive categories like global real estate and the corporate bond category were amongst the worst-performing categories last year.  François Doyon La Rochelle: Yes, I was also surprised by these results and by the fact that the other bond categories, the intermediate core bond category, and the high yield bond category have also had poor results with low success rates of 37.9% and 27.2% respectively. Therefore, vastly underperform their passive counterparts.  James Parkyn: Wow, I would have thought that in a year like 2022 with all the talk surrounding inflation, interest rates, and central bank decisions active management would have prevailed. Given the narrative, you would expect that active managers would be able to adjust their portfolios and reap the benefit of predicting interest rate changes.  François Doyon La Rochelle: Indeed James. I also looked at the 2022 SPIVA U.S. and Canadian reports and although they don't analyze the performance of active versus passive in the same way as Morningstar, there were some very interesting takeaways in their report regarding the inability of active managers to outperform their respective benchmarks. The report highlights that the market conditions for equities and fixed income were uncommonly challenging in 2022, underlying however that these difficult markets gave active managers material opportunities to generate relative outperformance. Opportunities that most active managers were unable to exploit.  James Parkyn: What do they mean by that unable to exploit?  François Doyon La Rochelle: Well, if we examine the example provided in the U.S. SPIVA report, the S&P500 Growth, and the S&P500 Value indices, which are both large-cap U.S. equities indices, were respectively the worst and best-performing equity benchmarks in 2022. The report goes on to mention that more than 20 percentage points were separating their full year's performance. Our regular listeners will remember that we highlighted in our podcast #48 that value stocks vastly outperformed growth stocks in 2022.  James Parkyn: Wow, this type of dispersion in returns should in my mind been a great opportunity for active management.  François Doyon La Rochelle: Yes, but the active managers were not able to seize the opportunity since most of them, who are benchmarked to the S&P500 Index, failed to beat it. Since large-cap growth stocks were the worst-performing asset class, a large-cap growth manager could have simply purchased stocks of another U.S. asset class to beat its benchmark. Despite this fact, close to 74% of active managers in that asset class still failed to beat their benchmark. Here is a quote from the report, “the prospect for skilled stock pickers in large-cap U.S. equities were above average and the tailwinds for even unskilled managers were unusually favorable” The report goes on to say “An examination of the particular market segments that over and underperformed shows that they should have given the advantage to active managers, in particular thanks to their ability to deviate from broad-based, market cap weighted allocations to large-cap U.S. equities.    James Parkyn: Anything to report on the longer-term results of active versus passive?  François Doyon La Rochelle: Well, for the last 10-year period the success rate for active management in the Morningstar report is at 31.5%, meaning only 31.5% of the active managers were able to beat their passive counterparts. If you look at the 20-year results, the success rate drops even further to a low of 16.2%. In the U.S. SPIVA report what I found interesting there is that it gives the quartile breakpoints for Equity funds in the U.S. The takeaway here is that if you would have bought an S&P500 Index fund or a broader market S&P1500 Index Fund you would have effectively bought a fund that ranked in the first quartile of all active and passive funds in the over the last 5,10- and 20-year periods.       James Parkyn: Well François that's very compelling evidence because I wrote a blog recently and you got all this financial press “There is a recession coming…you should do this and do that with your portfolio...” and I said “Yeah, but then what? What do you do?” and often the market is going to react before the recession ends. Maybe active managers, as you mentioned earlier, the large-cap blend, 54% beat the benchmark. But then what? What about the second year? And there are taxable events and you have got to guess both events. If you're riding a horse in active management, it's got to continuously be at par with the market. When you show only 16.2% over 20 years beat the market and we haven't even gotten into the tax and efficiency of active management vs. taxes. So again, based on these reports and our experience with client portfolios, we're very confident that staying the course with our investment philosophy is doing the right thing with our customers and we believe that our listeners would agree as well.  François Doyon La Rochelle: That's correct, no changes are planned, again it's proof that over the long term, disciplined passive investors will earn higher returns than active investors.      Conclusion:   François Doyon La Rochelle: Thank you, James Parkyn for sharing your expertise and your knowledge.   James Parkyn: You are welcome, Francois.  François Doyon La Rochelle: That's it for episode #51 of Capital Topics!  Do not forget, if you would like to submit questions or suggestions for the show, please email us at: capitaltopics@pwlcapital.com  Also, if you like our podcast, please share it when with family and friends, and if you have not subscribed to it, please do.  Again, thank you for tuning in and please join us for our next episode to be released on May 11th.    See you soon! 

Dans cet épisode, James Parkyn et François Doyon La Rochelle discutent les sujets suivants :  Dans les nouvelles : La crise de solvabilité des Banques mondiales  Sujet Principal : Mise à jour sur la Gestion Active vs. Passive  Dans cet épisode, nous invitons nos auditeurs à découvrir notre dernière fonctionnalité ci-dessous. Pour la première fois, nous partageons le script du podcast, à la demande de certains de nos auditeurs.    Liens:  - The Grumpy Economist: How many banks are in danger? (johnhcochrane.blogspot.com)  par John Cochrane  -The Non-Bailout Bailout – Foreign Policy  par Adam Tooze, balado “Ones & Toozes”  -How Bank Oversight Failed: The Economy Changed, Regulators Didn't - WSJ par Andrew Acherman, Angel Au-Yeung & Hannah Miao  -Chief Risk Officer: The Most Thankless Job in Banking - WSJ par Ben Cohen  -Foolproof: Why Safety Can Be Dangerous and How Danger Makes Us Safe: Ip, Greg: 9780316286046: Books - Amazon.ca par Greg IP  -The Price of Time: The Real Story of Interest: Chancellor, Edward: 9780802160065: Books - Amazon.ca par Edward Chancellor  -Épisode 44 : Banques Centrales et Récessions — Sujet Capital par James Parkyn & François Doyon La Rochelle  -When Headlines Worry You, Bank on Investment Principles | Dimensional par Dimensional  -What Gets Lost When You Rescue Markets - WSJ par Jason Zweig  -It Wasn't Just Credit Suisse. Switzerland Itself Needed Rescuing. - WSJ par Margot Patrick, Patricia Kowsmann, Drew Hinshaw & Joe Parkinson  -SPIVA U.S. Year-End 2022 - SPIVA | S&P Dow Jones Indices (spglobal.com)  par Tim Edwards, Anu R. Ganti, Craig Lazzara, Joseph Nelesen & Davide Di Gioia  -Active Funds Continue to Fall Short of Their Passive Peers | Morningstar par Bryan Armour    Lire le script :  Introduction :  François Doyon La Rochelle: Bienvenue à Sujet Capital, un balado mensuel à propos de la gestion passive de portefeuille et de la planification financière et fiscale pour les investisseurs à long terme.  Vos hôtes pour ce balado sont James Parkyn et moi-même François Doyon La Rochelle, tous deux gestionnaires de portefeuilles avec PWL Capital.  Au programme aujourd'hui pour l'épisode #51 :  Pour notre premier sujet, nous aborderons la solvabilité des banques.  Et ensuite, pour notre sujet principal, nous ferons le point sur les résultats de la gestion active versus la gestion passive pour 2022.  Bonne écoute !    La crise de solvabilité des Banques mondiales :  François Doyon La Rochelle: Notre premier sujet aujourd'hui est un sujet d'actualité, c'est un sujet qui porte sur la solvabilité bancaire. James, tu vas aborder l'actualité entourant l'échec de la Silicon Valley Bank, également connue sous l'acronyme SVB, aux États-Unis et la crainte d'une contagion qui pourrait se propager à d'autres banques américaines et internationales, en particulier après l'annonce de la fusion forcée de la Banque crédit Suisse avec UBS. Il est important de noter que le crédit Suisse figurait parmi les 30 banques les plus importantes au niveau mondial. Maintenant, beaucoup de nos auditeurs se demandent si c'est le début d'une crise bancaire majeure comme nous l'avons vu il y a 15 ans en 2008-2009 avec la crise financière mondiale ?  James Parkyn: Je peux comprendre pourquoi nos auditeurs et en fait la plupart des investisseurs seraient très inquiets à propos de ces nouvelles dans le monde bancaire. C'est partout dans la presse financière. Vous ne pouvez pas y échapper. Dans ce segment, nous essaierons de résumer ce qui s'est passé et ce qu'il est important pour que les investisseurs sachent afin qu'ils évitent de prendre de mauvaises décisions qui pourraient avoir un impact négatif sur leur plan d'investissement à long terme.   François Doyon La Rochelle: Alors, commençons par SVB aux États-Unis. Qu'est-ce qui s'est passé et pourquoi a-t-elle échoué si rapidement ?  James Parkyn: L'histoire de ce qui s'est passé n'est pas encore entièrement connue. Ce que nous savons jusqu'à présent, c'est que l'effondrement soudain de la Silicon Valley Bank a été provoqué en partie par les actifs qu'elle détenait (principalement des bons du Trésor américain de haute qualité) qui ont perdu de la valeur lorsque les taux d'intérêt qui ont beaucoup augmenté après avoir été près de zéro. Un mauvais appariement entre ses actifs et ses passifs a provoqué une crise de liquidité. Les événements se sont déroulés si rapidement qu'ils ressemblaient un peu à l'histoire du film américain de Noël classique "It's a Wonderful Life" de Frank Capra avec le comédien Jimmy Stewart. Certain de nos auditeurs connaissent l'histoire du film où le frère de Jimmy Stewart a perdu l'argent de dépôt du Bailey Building and Loan, une caisse Populaire locale, dans une confusion d'enveloppe de dépôt à la banque appartenant au redoutable M. Potter. Très vite, la nouvelle se répandit dans la petite ville que le Bailey Building and Loan était insolvable et les clients se précipitèrent pour retirer leurs dépôts.     François Doyon La Rochelle: Oui, je dirais que pour les anglophones que c'est un film classique du temps des fêtes, l'un des plus aimés de tous les temps. Il illustre également parfaitement une panique bancaire ou en anglais « A run on the bank ».  James Parkyn: On peut se tourner maintenant vers L'économiste John Cochrane dans son blog intitulé "Combien de banques sont en danger ?" le 14 mars 2023, il explique selon moi le mieux la situation qui s'est produite avec la SVB. Il a dit : « SVB a échoué, essentiellement, parce qu'elle a financé un portefeuille d'obligations et de prêts à long terme avec des dépôts non assurés susceptibles de retrait sans conditions. Les taux d'intérêt ont augmenté, la valeur marchande des actifs est tombée en dessous de la valeur des dépôts. Quand les gens voudraient récupérer leur argent, la banque devrait vendre à bas prix, et il n'y en aurait pas assez pour tout le monde. Les déposants se sont précipités pour être les premiers à retirer leur argent. Et voilà, c'est ce qui est arrivé à SVB, une ruée aux guichets bancaires.  François Doyon La Rochelle: Pour mieux comprendre, il faut se souvenir de la situation économique qui prévalait en 2022 et de ce qui l'a précipitée. L'année dernière, le problème clé pour l'économie et les banques c'était l'inflation, qui a bondi au-dessus de 5% après des décennies autour de 2%. Jusqu'à la mi-2021, la Fed avait signalé qu'elle maintiendrait les taux proches de zéro pendant des années, puis elle a radicalement changé de vitesse et a relevé les taux au rythme le plus rapide depuis le début des années 1980. De nombreux investisseurs, dont SVB, ont été pris au dépourvu par cette nouvelle réalité de taux plus élevés.  James Parkyn: La mécanique de l'investissement obligataire est que la hausse des taux fait chuter les prix des obligations, en particulier les obligations qui n'arrivent pas à échéance avant de nombreuses années. Il a été largement rapporté que SVB privilégiait les obligations à plus long terme pour leur rendement supplémentaire. Une baisse de la valeur des avoirs obligataires d'une banque pourrait en théorie réduire son capital, C'est à dire le coussin entre l'actif et le passif qui absorbe les pertes.  François Doyon La Rochelle: Comment les régulateurs ont-ils laissé cette situation se produire ?  James Parkyn: Dans le WSJ du 24 mars 2023, dans un article intitulé "How Bank Oversight Failed: The Economy Changed, Regulators Didn't". L'article déclare: "Alors que les taux d'intérêt ont bondi après des années de stabilité, les régulateurs n'avaient pas pleinement anticipé l'impact que les banques subiraient sur la valeur de leurs avoirs obligataires. Jusqu'à la mi-2021, la Fed s'attendait à ce que l'ère des taux ultra bas se poursuive. Ce n'est qu'à la fin de 2022, alors que les taux avaient déjà considérablement augmenté, que les régulateurs ont averti SVB que sa modélisation du risque de taux d'intérêt était inadéquate. »  François Doyon La Rochelle: Alors, est-ce qu'on peut dire que les régulateurs n'effectuaient pas leur travail ?  James Parkyn: En partie oui, encore une fois le titre de l'article le dit bien. Un deuxième facteur a été l'absence de prise de conscience du danger que représentait la dépendance de la SVB à l'égard de dépôts très importants, qui pouvaient être retirés pratiquement à tout moment grâce à la technologie d'aujourd'hui. L'article du WSJ poursuit en disant : « Les banques en sont venues à dépendre davantage de ces dépôts. Les régulateurs reconnaissent qu'ils n'ont pas insisté sur une telle préoccupation parce que les gros dépôts provenaient des principaux clients de SVB et de Signature, qui, pensait-on, resteraient.   François Doyon La Rochelle: L'article du WSJ poursuit en disant : "... les dépôts ont fui beaucoup plus rapidement que jamais auparavant, aidés à la fois par la peur alimentée par les médias sociaux et par la technologie qui a permis aux gens de déplacer de grosses sommes en quelques clics sur un smartphone". J'ai du mal à croire qu'une grande banque avec un actif déclaré de 209 milliards de dollars américains échouerait à une gestion des risques aussi élémentaire. Est-ce qu'on peut dire que c'était une sorte de tempête parfaite?   James Parkyn: Je ne le crois pas. Nous disons souvent dans notre podcast, on ne sait pas ce qu'on ne sait pas, et un événement de type Black Swan n'est pas prévisible. Le cas de la SVB, est un cas de mauvaise gestion des risques à la base très élémentaire.  François Doyon La Rochelle: L'économiste John Cochrane dans son blog du 14 mars semble être d'accord. Il a déclaré : « Dans mon dernier article, j'ai exprimé mon étonnement que l'immense appareil de régulation bancaire n'ait pas remarqué ce risque énorme et élémentaire. Il faut mettre 2 + 2 ensembles : beaucoup de dépôts non assurés, une grande exposition au risque de taux d'intérêt. 2+2=4, ce ne sont pas des maths avancées ».  James Parkyn: Ce n'est pas tout, il y a encore plus d'éléments à cette histoire. La réglementation bancaire dans les pays développés comme le Canada et les États-Unis exige qu'ils aient en poste un cadre supérieur dans chaque banque dans le poste de chef de la gestion des risques (Chief Risk Officer). C'est incroyable, mais au moment de l'échec, la SVB n'avait personne dans ce rôle.   Le journaliste Ben Cohen du WSJ a écrit un article le 23 mars 2023, intitulé « C'est le poste le plus ingrat dans le secteur bancaire. Silicon Valley Bank ne l'a pas rempli pendant des mois. Il a écrit : « L'absence d'un cadre supérieur dans ce rôle pour la Silicon Valley Bank pendant huit mois critiques nous rappelle que le risque n'a pas à être excessif ou exotique pour être existentiel. L'exposition alarmante de SVB à la hausse des taux d'intérêt n'aurait pas dû être difficile à prévoir par la banque et les mesures pour se protéger aurait dû être facile à implanter. » Je suis étonné de voir comment une banque qui desservait une clientèle le plus innovant de l'économie américaine aurait pu être condamnée par une mauvaise gestion élémentaire des risques. Mais cette banque qui était une préférée du secteur de la technologie en Californie a échoué à cause de sa gestion des risques.  François Doyon La Rochelle: Mais la SVB devait sûrement avoir d'autres processus de gestion du risque parce que la responsabilité ultime revient au PDG de la banque et au conseil d'administration.  En fin de compte, le conseil d'administration de la banque serait-il responsable?  James Parkyn: Effectivement, le conseil est responsable. Puis même si on n'a personne en poste il faut avoir quelqu'un qui prend la responsabilité au niveau réglementaire. PWL Capital est réglementée, on a un Chef des Finances, on a un Chef de Conformité, on a un PDG qui est ultimement responsable de tout. Et on a un conseil d'administration qui supervise le Président et les activités de l'entreprise. Donc si on creuse un peu plus loin, oui je suis d'accord que même en l'absence de chef de la gestion des risques, au moins il aurait dû y avoir une personne par intérim et la réglementation aurait exigé des rapports réguliers au conseil d'administration sur la gestion du risque. Ben Cohen du WSJ l'a dit le mieux : "Bien sûr, la présence d'un directeur de la gestion des risques n'est pas nécessaire pour savoir quand la Réserve fédérale augmente les taux. Les dépôts des rapports réglementaires suggèrent que SVB était conscient de ses vulnérabilités bien avant la ruée sur la banque. : Le comité de la gestion des risques du conseil s'est réuni presque autant de fois l'an dernier (18) qu'au cours des trois années précédentes combinées (19). » Donc François, là encore, nous assistons à un échec retentissant des processus de gouvernance de base.  François Doyon La Rochelle:  Alors, qu'en est-il de la Banque Crédit Suisse et de la fusion avec UBS? Est-ce que la situation ressemble à celle de la SVB ? Quel est l'impact de la fusion du Crédit Suisse et d'UBS?  James Parkyn: La situation est en effet différente, mais c'est un effet de rebond. Tout le monde immédiatement dans les marchés financiers a remis en question toutes les banques. Sont-elles bien gérées ou mal gérées ? C'est là qu'il y a une historique récente, dans les 10 et 15 dernières années, ou le Crédit Suisse a été souvent mis en garde par les autorités réglementaires par des grosse amandes par les milliards et on s'inquiétait de sa gestion du risque. L'historien économique Adam Tooze dans son podcast Ones and Toozes du 17 mars 2023 l'a qualifié de "choc de confiance qui a tué le Crédit Suisse". Les auditeurs réguliers se souviendront du Podcast # 44 lorsque j'ai recommandé son livre « Crashed » une œuvre magistrale qu'il a écrit sur le système bancaire pendant la crise financière mondiale. Contrairement à SVB, avec Crédit Suisse, Adam Tooze affirme qu'il ne s'agissait pas d'une crise de liquidité mais plutôt d'une crise de contrepartie…… D'autres banques mondiales et des clients importants perdaient confiance dans la viabilité à long terme du Crédit Suisse compte tenu de son historique récente de sa mauvaise gestion du risque.  C'est aussi un enjeu majeur pour la Suisse et son rôle dans le système bancaire mondial. Un article récent du WSJ intitulé "Ce n'était pas seulement le Crédit Suisse. La Suisse elle-même avait besoin d'être sauvée ». Pour n'importe quel pays, les problèmes du Crédit Suisse seraient une urgence financière. Pour la Suisse, c'est un enjeu existentiel. Son modèle économique et son identité nationale, cultivés au fil des ans, se sont construits sur la sauvegarde des richesses et la gestion des grandes fortunes mondiales. Il ne s'agissait pas seulement d'une banque. La Suisse elle-même qui avait besoin d'être secourue.  François Doyon La Rochelle: La crise bancaire du Crédit Suisse a ajouté la dimension de contagion mondiale à cette crise. Pour les Suisses, elle menace un modèle économique et une identité nationale.  James Parkyn: Crédit Suisse, c'est la deuxième plus grande banque suisse et fait partie du Top 30 des banques systémiques mondiales. Donc, les autorités des pays du G20, surveillent ces 30 grandes banques et doivent respecter les normes de capital qui sont plus restrictives. Le Crédit Suisse a des problèmes de gestion des risques depuis plus d'une décennie. Adam Tooze dans son podcast du 17 mars l'a qualifié de "choc de confiance qui a tué le Crédit Suisse". Maintenant que le Crédit Suisse et UBS, la plus grande banque suisse, ont fusionné, la question qui doit se poser est : la nouvelle banque, aura plus de 50% du marché bancaire suisse, est-elle maintenant trop grande pour être renflouée si une nouvelle crise se réaliserai dans l'année ? Le WSJ a rapporté le 22 mars 2023 : « Son système bancaire est cinq fois plus grand que son produit intérieur brut et plus grand que dans la plupart des économies. UBS combiné avec le Crédit Suisse a un bilan deux fois plus grand que l'économie suisse ». C'est énorme ! On disait qu'il y avait une expression anglaise, une banque qui est « Too big to fail » ce qui veut dire que si elle est dans le trouble, le gouvernement va devoir qu'il vient à la rescousse pour la maintenir en vie. Mais dans ce cas-ci, c'est plutôt « Too big to bail ».   François Doyon La Rochelle: Il est clair pour moi que toutes ces turbulences auront un impact sur l'élaboration des politiques des banques centrales et leurs moyens pour lutter contre l'inflation en augmentant les taux d'intérêt. La SVB qui s'effondre aux États-Unis et le sauvetage d'urgence du Crédit Suisse devrait forcer les banques centrales à sous-peser leur décision entre gérer des risques systémiques et les risques d'inflation.  James Parkyn: Donc, on peut penser qu'il y a un certain consensus qui semble se développer surtout au Canada et aux États-Unis qu'on est à la fin de la hausse des taux. Même si c'est le cas, je pense que les hausses qu'on a eu depuis les 12 derniers mois continueraient de faire effet, selon certains économistes spécialisés, sur les banques et ça va impacter les bilans des banques ainsi que les actifs qu'ils détiennent. Ils causeront également des problèmes dans d'autres secteurs de l'économie. Je cite encore Adam Tooze, il a déclaré : « Lorsque les banques centrales augmentent les taux d'intérêt, elles essaient d'avoir un impact sur l'inflation par le biais d'événements négatifs. Avec un cycle de hausse des taux aussi rapide adopté par les banques centrales, il fallait s'attendre à ce que des chocs économiques négatifs se produisent. C'était seulement une question à savoir ce qui se plierait VS ce qui se casserait.  François Doyon La Rochelle: Quel est le rôle des régulateurs bancaires dans ce gâchis ?  James Parkyn: C'est une très bonne question François, je reviens sur les propos de l'ancien gouverneur de la banque de l'Angleterre, Mervyn King, que l'on a cité lors de notre podcast #44, qui invitait les Leaders des banques centrales à une réflexion sur les nouvelles stratégies à développer. Jason Zweig a écrit dans son l'article du WSJ du 17 mars et je le cite: « Au cours des deux dernières décennies, la Fed, le Trésor et d'autres autorités sont intervenues à maintes reprises pour stabiliser les marchés financiers, comme si l'échec n'était plus une option. Tout cela illustre un problème encore plus grave : les autorités centrales ne sont ni omniscientes ni omnipotentes, et leurs efforts pour extraire les risques du système peuvent le rendre plus dangereux, pas moins. Alors même que les règles se sont multipliées et que les renflouements se sont multipliés, le marché boursier américain a subi quatre krachs d'au moins 20 % depuis l'an 2000. »  François Doyon La Rochelle: Eh bien maintenant, nous parlons de Risque Moral. Jason Zweig en parle justement: "La tentative d'éradiquer l'échec du système financier, bien sûr, fait partie de la poussée plus large de la société moderne pour rendre la vie elle-même sans risque et à l'épreuve des idiots, avec des poussettes indestructibles, des emballages de médicaments à l'épreuve des enfants, voitures presque autonomes et autres... »  James Parkyn: Un autre chroniqueur du WSJ, Greg IP, l'a souligné dans son livre "Foolproof" publié en 2015. Il dit : « … rendre un environnement plus sûr peut endormir de nombreuses personnes dans la complaisance et la prise de risques excessifs »." Je lis également un livre écrit par l'historien financier britannique Edward Chancellor, intitulé "Le prix du temps". Ce livre décrit l'histoire et les origines des taux d'intérêt. Cet auteur fait valoir que "la tentative de contrôler le risque en abaissant les taux d'intérêt réduit le coût de la prise de risque, et finit donc par augmenter le montant global du risque dans le système". Nous avons beaucoup parlé François dans notre podcast des taux d'intérêt normalisés a plusieurs reprises dans la dernière année dans notre Podcast. Je crois que nous avons eu des taux trop bas pendant trop longtemps et trop de gens ont tenu pour acquis que ça continuerait tout simplement.  François Doyon La Rochelle: James, quel est ton conseil pour nos auditeurs ?  James Parkyn: En préparation de ce Podcast, je suis retourné à notre Podcast #44 sur les Banques Centrales. La grande crainte à l'automne quand on l'a publié, concernait les récessions et l'impact potentiel sur les marchés financiers. Nous avons souligné la recherche de Dimensional qui a montré que les marchés du monde entier ont récompensé les investisseurs même lorsque l'activité économique a ralenti. Beaucoup pensent maintenant que le spectre des faillites bancaires réduira les activités de faire des prêts par les banques, ce qui augmentera encore la probabilité d'une activité économique au ralentie. Nous recommandons à nos auditeurs de rester disciplinés dans leur plan d'investissement a LT et d'oublier tout le bruit du moment tel que l'inflation, les taux d'intérêt, la récession et maintenant nous pouvons ajouter à la liste les faillites bancaires.  François Doyon La Rochelle: Oui, en effet, nos auditeurs réguliers le savent, c'est l'un de nos mantras en tant qu'investisseur discipliné avec un état d'esprit à long terme, vous ne pouvez pas prévoir l'avenir.  James Parkyn: En conclusion François, nous nous tournons vers nos amis de Dimensional, ils ont produit un excellent article intitulé "Quand les grands titres vous inquiètent, misez sur les principes d'investissement" qui dit que : «Bien que le plan de chaque investisseur soit un peu différent, ignorer les grands titres et se concentrer sur les principes éprouvés suivants peut vous aider à éviter de faire des faux pas avec vos placements.  1. L'incertitude est inévitable : l'incertitude n'est pas nouvelle et investir comporte des risques.  2. La synchronisation du marché c'est-à-dire le Market Timing en EN est futile.  3. "La diversification est votre ami", une citation attribuée au lauréat du prix Nobel Merton Miller.  François Doyon La Rochelle: J'aime la citation suivante dans cet article : « Lorsque l'inattendu se produit, de nombreux investisseurs ont le sentiment qu'ils devraient faire quelque chose avec leurs portefeuilles. Souvent, les grands titres et les experts attisent ces sentiments avec des prédictions de scénarios négatifs et décourageants. Pour l'investisseur à long terme, cependant, planifier ce qui peut arriver est beaucoup plus approprié que d'essayer de prédire l'avenir. Comme d'habitude, nous partagerons le lien avec nos auditeurs.    Mise à jour sur la Gestion Active vs. Passive  François Doyon La Rochelle: Pour notre deuxième sujet d'aujourd'hui, on va vous donner une mise à jour des résultats de la gestion active versus gestion passive pour 2022. Je crois maintenant, qu'après tous les podcasts qu'on a publiés, que la grande majorité de nos auditeurs comprennent que nous croyons dans l'efficacité des marchés et que notre philosophie d'investissement est basée sur les preuves empiriques que l'utilisation de produits d'investissement grandement diversifiés, à faible coût et gérés passivement est la meilleure façon de capturer les rendements du marché et d'augmenter les chances de succès à long terme pour nos clients.  James Parkyn: Exactement et ça fait plus de 20 ans maintenant qu'on a adopté cette approche d'investissement basée sur la conviction que l'investissement actif est un jeu à somme négative ou en anglais « is a negative sum game ». Cependant, ça ne veut pas dire qu'on ne remet pas en question et qu'on ne consulte pas les derniers papiers de recherche et derniers articles pour nous assurer que notre philosophie d'investissement est toujours supportée par des preuves.  François Doyon La Rochelle: Oui, et c'est pourquoi on analyse année après année le rapport SPIVA, de S&P Dow Jones Indices qui mesure les résultats des indices S&P par rapport aux fonds actifs, et aussi le rapport de Morningstar « Active vs Passive Barometer » qui mesure la performance des fonds actifs par rapport à leurs pairs passifs, pour voir si les résultats de la dernière année étaient différents des résultats des années passé. Malheureusement pour les gestionnaires actifs, cette année n'a pas été différente des années précédentes, puisqu'encore une fois les gestionnaires actifs dans leur ensemble n'ont pas été capable de battre leurs comparables passifs.  James Parkyn: Ce que tu souligne la Francois est particulièrement intéressant après une année difficile comme 2022, lorsque les marchés boursiers et obligataires se sont exceptionnellement repliés en même temps. Le vieux discours des gestionnaires actifs est qu'une bonne gestion active surpassera les investissements passifs en période de volatilité des marchés. Donc qu'est ce qui s'est passé réellement en 2022 ?  François Doyon La Rochelle: Eh bien, étant donné la forte volatilité du marché en 2022, on s'attendait à ce que les gestionnaires actifs aient de nombreuses opportunités de battre les stratégies passives.  James Parkyn: En effet, on a couvert les grands événements géopolitiques et économiques dans notre podcast au cours de la dernière année, mais je pense qu'il est utile d'en souligner certains pour que nos auditeurs aient une idée des opportunités que la gestion active aurait pu exploiter pour générer de meilleurs résultats. L'année a commencé avec la guerre en Ukraine et les troubles géopolitiques qui ont suivi, ensuite on a eu l'augmentation des taux d'inflation à des niveaux très élevés ce qui a mené à la réaction rapide et forte des banques centrales pour augmenter les taux d'intérêt. Encore une fois, je ne fais que souligner ici l'évidence, mais pour en revenir à notre sujet, comment est-ce que la gestion active s'est comportée contre la gestion passive l'année dernière ?  François Doyon La Rochelle: He bien, pour répondre à ta question, James, je vais me baser principalement sur le rapport de Morningstar appelé « Active vs passive Barometer » donc en français le baromètre actif versus passif de Morningstar. Ce rapport est assez complet, il couvre près de 8 400 fonds gérés activement aux États-Unis avec environ 15,7 billions de dollars d'actifs sous gestion. Je préfère ce rapport au SPIVA car il mesure le taux de réussite des gestionnaires actifs par rapport aux résultats de fonds gérés passivement et non seulement par rapport à des benchmarks.  James Parkyn: C'est une nuance importante. Les « benchmark ou indices de références » du rapport Morningstar reflètent la performance réelle, nette des frais, des fonds passifs que l'on peut acheter et non simplement la performance d'un indice boursier dans lequel on ne peut pas investir sans encourir de frais.  François Doyon La Rochelle: C'est exact James, et c'est une nuance très importante. Donc si on passe maintenant aux résultats, encore une fois, sur la base du récit selon lequel les gestionnaires actifs feront mieux en période de tension et de volatilité sur le marché, je pense que les résultats pour 2022 sont très peu concluants pour les gestionnaires actifs.  Dans l'ensemble, sur la base des 20 catégories d'investissement différentes rapportées par Morningstar, seuls 40,5% des gestionnaires actifs ont pu battre leurs indices de référence respectifs en 2022. C'est un résultat qui est plus faible qu'en 2021, une très bonne année sur les marchés, quand 51,1 % des gestionnaires actifs ont battu leurs indices de référence.  James Parkyn: Comme tu l'as mentionné, c'est très intéressant car ça va à l'encontre de ce que nous récite la gestion active, qu'ils seront plus performants dans les années difficiles. Donc sur les 20 catégories, quelles étaient les meilleures ?  François Doyon La Rochelle: Sur les 20 catégories différentes, 6 d'entre elles ont un taux de réussite supérieur à 50%. Ce qui veut dire que dans chacune de ces 6 catégories plus de 50% des gestionnaires ont pu battre leurs benchmarks. À titre de comparaison, ce chiffre-là en 2021 était de 7. Cela dit, les catégories qui ont le mieux faites en 2022 étaient, en premier, la catégorie des titres de petite capitalisation de type valeur avec un taux de réussite de 61%, en deuxième, la catégorie de titre de petite capitalisation de type croissance avec un taux de réussite 56,9% et le troisième était la catégorie des actions mondiale avec un taux de réussite de 56 %. Je dois mentionner, en toute objectivité, que la catégorie des actions américaines de grande capitalisation, qui est probablement la catégorie de fonds la plus importante en termes d'actifs sous gestion, figurait également parmi les meilleures catégories en 2022 avec un taux de réussite de 54,1%. Ce qui signifie que 54,1 % des gestionnaires actifs de cette catégorie ont battu leur indice de référence dans la dernière année.  James Parkyn: C'est quoi maintenant les catégories qui ont moins bien faites ?  François Doyon La Rochelle: La pire catégorie parmi les 20 était l'immobilier mondial avec un taux de réussite de seulement 20%, cette catégorie a été légèrement dépassée par la catégorie des obligations d'entreprises avec un taux de réussite de 22,6% et par la catégorie des actions des pays émergents avec un taux de réussite de 23,4%.  James Parkyn: Ce que je trouve intéressant dans ces résultats, c'est que les catégories très sensibles aux taux d'intérêt comme l'immobilier mondial et la catégorie des obligations de sociétés ont été parmi les catégories les moins performantes l'année dernière.  François Doyon La Rochelle: Effectivement, j'ai également été surpris par ces résultats et par le fait que les autres catégories de revenu fixe « ou d'obligations » comme la catégorie d'obligations à moyenne échéance et la catégorie d'obligation à rendement élevé ont également eu de mauvais résultats avec des taux de réussite faibles de 37,9 % et 27,2 % respectivement. Donc eux aussi ont grandement sous-performer leurs homologues passifs.  James Parkyn: Wow, j'aurais pensé que dans une année comme 2022 avec toutes les discussions entourant l'inflation, les taux d'intérêt et les décisions de la banque centrale, que la gestion active aurait prévalu. On se serait attendu à ce que les gestionnaires actifs soient en mesure d'ajuster leurs portefeuilles et de tirer profit de la prévision des variations des taux d'intérêt.  François Doyon La Rochelle: En effet James. J'ai aussi regardé les rapports SPIVA américains et canadiens de 2022 et bien que ces rapports n'analysent pas la performance de la gestion active versus la gestion passive de la même manière que Morningstar, il y avait quand même des points très intéressants dans leur rapport en ce qui concerne l'incapacité des gestionnaires actifs à surperformer leurs indices de références respectifs. Le rapport souligne que les conditions de marché pour les actions et les titres à revenu fixe ont été exceptionnellement difficiles en 2022, soulignant toutefois que ces marchés difficiles ont donné aux gestionnaires actifs de grandes opportunités pour générer une surperformance relative. Des opportunités que la grande majorité des gestionnaire actifs n'ont pas su exploiter.  James Parkyn: Qu'est ce que tu veux dire?  François Doyon La Rochelle: Eh bien, si on examine l'exemple fourni dans le rapport américain de SPIVA, l'indice S&P500 de type croissance et l'indice S&P500 de type valeur, qui sont tous deux des indices d'actions américaines à grande capitalisation, étaient respectivement les indices de référence pour les actions les moins performants et les plus performants en 2022. Le rapport poursuit en mentionnant qu'il y avait plus de 20 points de pourcentage qui séparaient leur performance respective pour l'année. Nos auditeurs réguliers vont se souvenir qu'on a souligné dans notre podcast #48 que les titres de valeur avaient largement surperformé les titres de croissance en 2022.  James Parkyn: C'est vraiment étonnant, j'aurais pensé que ce type de dispersion dans les rendements auraient offert des belles opportunités pour la gestion active.  François Doyon La Rochelle: Oui on aurait pensé, mais les gestionnaires actifs n'ont pas su saisir les opportunités puisque la majorité d'entre eux, qui ont comme indice de référence le S&P500, n'ont pas réussi à le battre. Étant donné que les actions de croissance à grande capitalisation étaient la classe d'actifs la moins performante, un gestionnaire de titre de croissance à grande capitalisation aurait pu simplement acheter des actions d'une autre classe d'actifs pour battre son indice de référence. Malgré ça, près de 74 % des gestionnaires actifs de titre de croissance à grande capitalisation n'ont pas été capable de battre leur indice de référence.  Voici une citation du rapport SPIVA américain, "la perspective pour les meilleur gestionnaires d'actions américaines à grande capitalisation était supérieure à la moyenne et les vents favorables, même pour les gestionnaires moins performant, étaient exceptionnellement bons", le rapport poursuit en disant "un examen des différents segments de marché qui ont été les plus et les moins performants montre qu'ils auraient dû donner l'avantage aux gestionnaires actifs, en particulier grâce à leur capacité à s'écarter des indices pondérées en fonction de la capitalisation boursière qui ont des allocations importantes en actions américaines de grande capitalisation.  James Parkyn: As-tu quelque chose à souligner sur les résultats à plus long terme ?  François Doyon La Rochelle: Eh bien, pour la dernière période de 10 ans, le taux de réussite de la gestion active dans le rapport Morningstar est de 31,5 %, ce qui signifie que seulement 31,5 % des gestionnaires actifs ont pu battre leurs homologues passifs. Si on regarde les résultats sur 20 ans, le taux de réussite chute encore plus bas à 16,2 %. Dans le rapport américain SPIVA, ce que j'ai trouvé intéressant, c'est qu'il donne les points de bascule des quartiles pour les fonds d'actions aux États-Unis. Ce qu'il faut retenir ici, c'est que si vous aviez acheté un fonds indiciel S&P500 ou un fonds indiciel S&P1500, vous auriez effectivement a acheté un fonds qui s'est classé dans le premier quartile de tous les fonds actifs et passifs américains au cours des dernières périodes de 5, 10 et 20 ans.  James Parkyn: Sur la base de ces rapports, je ne pense pas qu'on va changer de sitôt notre façon d'investir.  François Doyon La Rochelle: Non aucun changement en vue, encore une fois, je pense que c'est la preuve qu'à long terme, les investisseurs qui sont disciplinés et qui privilégie la gestion passive obtiendront des meilleurs rendements que les investisseurs actifs.    Conclusion :  François Doyon La Rochelle: Merci James Parkyn d'avoir partagé ton expertise et ton savoir.  James Parkyn: il m'a fait plaisir Francois.  François Doyon La Rochelle: Hé bien c'est tout pour ce 51ième épisode de Sujet Capital!  Nous espérons que vous avez aimé.  N'hésitez pas à nous envoyer vos questions et suggestions. Vous pouvez nous joindre par courriel à sujetcapital@pwlcapital.com .  De plus, si vous aimez notre podcast, partagez-le avec votre famille et vos amis et si vous n'y êtes pas abonné, faites-le SVP.  Encore une fois, merci d'être à l'écoute et joignez-vous à nous pour notre prochain épisode qui sortira le 11 mai.  A bientôt! 

Hear from Anu Ganti of S&P Dow Jones Indices

CNBC's Bob Pisani spoke with Dan Draper, CEO of S&P Dow Jones Indices – along with John Davi, Founder & CEO of Astoria Portfolio Advisors. While markets are still suffering in the wake of Silicon Valley Bank's big blowup they drilled down into the impact the collapse is having on the broader banking business and regional bank ETFs – as well as what it could mean for the future of Fed rate hikes. They also broke down the results of the latest SPIVA survey and talk active versus passive with the man in charge of S&P Dow Jones Indices.In the “Markets 102” portion, Bob continued the conversation with Dan Draper from S&P Dow Jones Indices.

Peter Harrison, CEO of Schroders joins Dan Draper, CEO at S&P Dow Jones Indices and host Joe Cass on this episode of Fixed Income in 15. Discussion focused on Peter & Dan's experiences working across the globe for different institutions, the day-to-day realities of being a CEO and, private markets, blockchain and Peter's experience meeting The Queen. Sign-up here to be notified as soon as future episode are published View the series so far here

CNBC's Bob Pisani spoke with Jan van Eck, CEO of VanEck Associates, Chris Hempstead, Director of ETF Trading at Mirae Asset Securities, and Fiona Boal, Global Head of Commodities and Real Assets at S&P Dow Jones Indices. They took a closer look at the ripple effects of Europe's energy crisis and fluctuating demand in China. They also discussed key alternatives to crude and broke down potential ways to help investors get the edge when it comes to getting in on the energy game for the rest of 20-22. In the Markets ‘102' portion of the podcast, Bob continues the conversation with Jan van Eck.

CNBC's Bob Pisani spoke with Tom Lydon, Vice Chairman at Vetta-Fi, and Anu Ganti, Senior Director of Index Investment Strategy at S&P Dow Jones Indices. They delved into the age-old debate of active versus passive management. With market volatility on the rise, many active fund managers claim this is their time to shine – and according to the latest SPIVA survey out from S&P Dow Jones Indices, actively managed funds are enjoying their best performance against their benchmarks in over a decade. But is all that enough to beat out passive investing in the long run? In the Markets ‘102' portion of the podcast, Bob continues the conversation with Tom Lydon.

Crit Thomas, global market strategist at Touchstone Investments, acknowledges that he is giving potentially controversial advice in suggesting that with interest rates still rising investors might look to buy longer-duration bonds, but he thinks that rates will peak soon and that investors who stay completely focused on short-term bonds will find themselves with significant re-investment risk -- the chance that they will be looking at lesser returns when bonds mature -- in a year or two. While he is not going way up the maturity scale, Thomas is looking to position both fixed-income and equity portfolios for a recovering and changed market and economy in the next two years. Also on the show, Chuck discusses the relative success -- or lack thereof -- that active managers have had in beating their passive benchmarks this year with Tim Edwards, managing director of index investment strategy, S&P Dow Jones Indices, discusses the rising percentage of Americans with long-term credit-card debt -- at just the wrong time to have it -- with Ted Rossman of CreditCards.com, and these strange times we are living through call for some "Weird Financial News" with stories about Elon Musk, donkey penises and more.

US equity markets relinquished earlier session gains to settle with sharp losses heading into the Labor Day long weekend as investors digested an August jobs report and reports of further delays to the re-opening of the Nord Stream 1 pipeline - Dow fell -338-points or -1.07%, erasing an earlier ~370-point gain. The broader S&P500 -1.07%, with Communication Services (down -1.86%) and Real Estate (-1.68%) falling over >1.5% to lead ten of the eleven primary sectors lower. Energy was the only primary sector to advance, climbing +1.81%. The Nasdaq shed -1.31%, falling for a sixth straight day in its longest losing streak since August 2019. Large cap technology names Apple Inc (down -1.36%), Microsoft Corp (-1.67%) and Meta Platforms Inc (-3.05%) all logged solid losses. Advanced Micro Devices Inc (down -2.54%) will replace DuPont de Nemours Inc (-0.85%) in the S&P 100 index effective 19 September, S&P Dow Jones Indices announced on Friday (2 September). The small capitalisation Russell 2000 lost -0.72%.

Alan Gayle, president at Via Nova Investment Management, says that while he is optimistic that Europe and other global markets will see a strong recovery in the future, until that happens -- likely sometime next year -- he prefers to be invested in the United States, despite the struggles of markets here. In a wide-ranging Big Interview, Gayle calls the current environment "exceptionally complicated," noting that recessionary forces are held at bay by a strong job market and flush consumers, and he expects those forces to make it so that a downturn or decline won't turn into "a full-blown recession." Also on the show, Ira Rothberg, portfolio manager of the Hennessy Focus Fund, discusses the benefits and challenges of concentrating portfolio decisions in volatile market conditions, Craig Lazzara of S&P Dow Jones Indices discusses Tuesday's release of the latest S&P CoreLogic Case-Shiller Indices and how it shows that home prices nationally remain way up from last year even as they have started to pull back from recent peaks, and Catherine Collinson discusses the latest research from the Transamerica Center for Retirement Studies, showing how employers have changed their offerings coming out of the pandemic.

CNBC's Bob Pisani spoke with Dan Draper, CEO of S&P Dow Jones Indices and Tom Lydon, CEO of ETF Trends. They discussed all things indexing – everything from ESG to cryptocurrencies, thematic trends and the the secrets behind the power of indexing. In the Markets 102' portion of the podcast, Bob continues the conversation with Dan Draper from S&P Dow Jones Indices.

Lukka's CEO Robert Materazzi discusses the company's Crypto asset data services and partnerships with S&P Dow Jones Indices and State Street. He also talks about Bitcoin, Crypto Market, DeFi, NFTs, US crypto regulations, infrastructure bill and much more.https://www.lukka.tech/https://twitter.com/LukkaTech

US equity markets extended their rebound from Monday's sharp falls as some more strong corporate earnings releases overshadowed COVID concerns - Dow up +286-points or +0.83% . The broader S&P500 gained +0.82%, logging its biggest back-to-back advance (up +2.34%) since 14 May. Energy (up +3.53%) led eight of the eleven primary sectors higher. Moderna Inc rose +4.48% after the biotechnology company joined the S&P500 index following the recent change announced by S&P Dow Jones Indices. The technology-centric Nasdaq rose +0.92%. Netflix Inc fell -3.28% after the video-streaming giant's second quarter result released after the close of the previous session underwhelmed analysts. The small capitalisation Russell 2000 +1.81%.

US equity markets retreated despite another round of solid corporate earnings releases as investors continued to eye fresh COVID-19 impacts and slowing growth in China - Dow added +54-points or +0.15% . The broader S&P500 eased -0.33%, with Energy (down -1.41%) the worst performing primary sector for a second consecutive session. Utilities (up +1.2%) sat atop the primary sector leaderboard. General Motors Co (down -1.81%) announced that its Lansing Delta Township Assembly plant in Michigan and Spring Hill Assembly plant in Tennessee would take downtime from July 19 through July 26.The Nasdaq fell -0.70%. The small capitalisation Russell 2000 fell -0.55%. Moderna Inc rallied over >5% in the extended session after S&P Dow Jones Indices confirmed that the biotechnology company would be added to the S&P500 index at the opening of trading on 21 July, replacing Alexion Pharmaceuticals Inc (down -3.27%).

S&P Dow Jones Indices on Tuesday rolled out five new cryptocurrency index products, the first major expansion of its digital assets benchmarking tools since entering the market in May. Grayscale Investments Forges Agreement with BNY Mellon to Provide Asset Servicing and ETF Services for Grayscale Bitcoin Trust GBTC. Ethereum-based interoperability network Connext raises $12 million in new funding.

As the new Executive Director of the Aspen Institute's Finance Leaders Fellowship, Kara Gustafson is mobilizing a global community of finance industry leaders for a journey that ignites their passion and directs their skills and talents toward solving some of society's most complex challenges. Fellows include people like the CEO of S&P Dow Jones Indices, CFO of General Mills, a Managing Director at Morgan Stanley, the recently nominated Director of the CyberSecurity & Infrastructure Security Agency for the White House, and the Head of Enforcement at the New York Stock Exchange - just to name a few.So, what does the finance industry - a sector often knocked for causing harm and distrust - and the leaders of it, have to do with catalyzing positive social change? Kara says: a lot. And she knows first hand what the potential is as a member of the founding team of Goldman Sachs' corporate philanthropy work: A role she held for fifteen years that transformed the way the big banks made philanthropic investments. On this episode of the Value of Leadership, Kara shares what it was like to lead in this new movement that prioritized social return alongside financial return, and what continues to call her to this work.You can learn more about the Finance Leaders Fellowship at agln.aspeninstitute.org/fellowships/financeleaders. 

Breaking away from a range-bound trade, the benchmark indices zoomed over 1 per cent in the last-hour of trade on Tuesday amid broad-based buying after the union government said that it is speeding up emergency approvals for foreign-made vaccines that have been granted emergency use authorisation in other countries amid alarming spike of coronavirus infections across India. This comes after the Centre approved a third vaccine -- Russia's Sputnik V -- for emergency use authorisation. Barring the Nifty IT and Pharma indices, which ended over 3 per cent and 1 per cent lower, respectively on the back of profit-booking, all other sectoral indices ended the day in the green. While the Nifty PSU Bank index surged 4 per cent after nursing a 9 per cent cut on Monday, the Nifty Bank, Private Bank, Financial Services, Metal, Auto, and Realty indices gained between 3 per cent and 4 per cent. The Nifty FMCG index, meanwhile, ended 0.6 per cent higher. Among the frontline indices, the BSE barometer Sensex jumped 661 points, or 1.4 per cent, to settle the day at 48,544 levels. In the intra-day deals, the index had hit a high and low of 48,627 and 47,775, respectively. On the NSE, the Nifty50 index closed the day at 14,505 levels, adding 194 points or 1.36 per cent. The index's high and low of the day were 14,529 and 14,275, respectively. M&M, Bajaj Finserv, Tata Motors, Bajaj Finance, Maruti Suzuki, HDFC, and JSW Steel were the top gainers on the Nifty, up in the range of 4 per cent to 8 per cent, while Dr Reddy's Labs, TCS, Tech M, Wipro, HCL Tech, Britannia, and Divis Labs were the top drags, down up to 4 per cent. Mood in the broader market too remained upbeat. The S&P BSE MidCap index gained 1.46 per cent with IDBI Bank, Bank of India, Federal Bank, L&T Finance Holdings, IDFC First Bank, SAIL, and Shriram Transport Finance soaring between 5 per cent and 9.5 per cent. The S&P BSE SmallCap index, on the other hand, ended 1.2 per cent higher. Buzzing Stocks Shares of information technology major Tata Consultancy Services tumbled 5.1 per cent to Rs 3,074.55 apiece on the BSE in the intra-day deals as investors booked profit in the counter. Even as TCS reported its highest-ever order book in a quarter, at $9.2 billion, and a 15 per cent rise in net profit at Rs 9,246 crore, analysts feel the stock is trading at premium valuations and has factored-in most of the positives. The stock ended 4.2 per cent lower on the BSE today. Shares of public sector lender Bank of Maharashtra, meanwhile, surged 20 per cent to hit an intra-day high of Rs 27.3 apiece on the BSE on Tuesday after over 3 million shares changed hands on the counter in multiple block deals. By close, the stock 18 per cent higher at Rs 27 per cent as against a 1.4 per cent gain in the benchmark Sensex index. About 3.2 million shares changed hands on the counter on the BSE till 3:30 pm in multiple block deals. Shares of IDBI Bank also jumped 10.6 per cent to hit an intra-day high of Rs 37.40 on the BSE after a Business Standard report stated that the Cabinet will soon consider the proposal to sell the government’s 45.5 per cent stake in the company, paving the way for strategic divestment in the lender. Shares of Adani Ports fell 6 per cent to Rs 702 on the BSE after S&P Dow Jones Indices said it has removed the company from its sustainability index due to the firm’s business ties with Myanmar’s military which is accused of human rights abuses after a coup this year. Global markets Global stocks ticked up on Tuesday as China's exports in dollar terms rose 30 per cent YoY and imports rose 31 per cent, boosting confidence for a rebound in its domestic demand. Besides, market players awaited US data which expected to show a pick-up in inflation. The broad Euro STOXX 600 gained 0.3 per cent to near record highs, with export-heavy German shares up 0.2 per cent. Indexes in Paris and London shares fell 0.1 per cent. In Asia, Japan's

Thirty years is an eternity in market terms, particularly if the market in question is the commodities market. Fiona Boal, Global Head of Commodities and Real Assets for S&P Dow Jones Indices, joins the Essential Podcast to talk about the 30th anniversary of the GSCI, supercycles, the energy transition, and the idiosyncratic nature of commodities markets in general.

RMB's Matete Thulare talks Prosus and the Tencent share sale. Len Jordaan of S&P Dow Jones Indices on the latest active vs passive performance results for South Africa. TWK Agri CFO Eddie Fivaz chats interim revenue.

The passive versus active debate goes back a long way, and keeps reemerging in the ETF industry as product innovation and new ideas disrupt old norms. Aye Soe, global head of product management at S&P Dow Jones Indices, shares what the data tells us about alpha—and managers' ability to find it.

US equity markets made a strong start to December, with the Dow Jones Industrial Average logging an intra-day record high and both the S&P500 and Nasdaq notching fresh record closing highs - Dow settled +185-points or +0.60% higher, having climbed over >400-points earlier in the session to a intra-day record high of . Apple Inc (up 3.1%) was the leading Dow performer. The broader S&P500 gained +1.1% to 3,662.45, with Communication Services (up +1.96%), Financials (+1.57%) and Information Technology (+1.41%) leading nine of the eleven primary sectors higher. Industrials (down -0.17%) was the only primary sector to close in the red. The technology-centric Nasdaq +1.3% to 12,355.11. Tesla Inc gained +3% after S&P Dow Jones Indices confirmed after the close of the previous session that the electric vehicle maker would be added to the S&P500 index in a single step on 21 December. Amazon.com Inc's (up +1.64%) AWS announced a development agreement with BlackBerry (+19.25%).

US equity markets closed out a stellar month on the backfoot amid some profit taking and month-end rebalancing activity - Dow dropped -272-points or -0.91%, having been down more than >400-points earlier in the session. Travelers (down -3.6%)and Chevron Corp (-4.5%) were the worst performing stock in the Dow on the final trading day of the month. The broader S&P500 -0.46%, with Energy (down -5.37%) the worst performing primary sector overnight and logging its worst daily performance since 24 June. Exxon Mobil Corp was little changed in after hours trading (after a -5.13% fall in the regular session) after saying it will focus on a few of its near-term, oil-rich assets that show more promise, including developments in Texas's Permian Basin and in South America, as it looks to prioritise between US$16B and US$19B in capital and exploration investments next year and between US$20B and US$25B annually through 2025. The energy heavyweight said that it was writing down the value of its natural gas assets by US$17B to US$20B. Chief Executive Darren Woods sounded optimistic about the fourth quarter in a statement, saying that "the business environment" was showing "signs of improvement" despite the resurgence in COVID-19 cases and economic restrictions, adding that "Prices and margins for many of our businesses have improved from the third quarter and when coupled with continuing efforts to reduce spending and capture additional efficiencies, quarter-to-date cash flow has improved versus our plan assumptions." The Nasdaq dipped -0.06%. Advanced Micro Devices Inc (up +6.3% at US$92.66) closed at a record high after the company's chief executive officer Lisa Su said she expects continued growth in the PC market after a pandemic boom and a better-than-seasonal first quarter in 2021 for the chip maker. Tesla Inc rallied over >4% in extended trading after S&P Dow Jones Indices confirmed it will add the electric vehicle maker to the S&P 500 at its full float-adjusted market capitalisation weight effective prior to the open of trading on Monday, December 21, 2020 rather than in tranches. S&P Dow Jones said it will announce which company will leave the S&P 500 to make room for Tesla on 11 December.

This has been an unusually exciting month for Exchange Traded Funds in the country. Not only because of the confusion created by Treasury’s stance in inward listed ETFS and regulation 28, but because on November 27th, the industry marked exactly 20 years since the first ever ETF was listed on the Johannesburg Securities exchange. The rise in popularity of exchange traded funds, etfs, has seen over R120bn flow into these products in this the 20th year since the first was brought to market by provider Satrix. Michael Avery looks back on the last 20 years with the man who brought the first ETF to market Mike Brown, Managing Director and Financial Advisor of etfSA; Helena Conradie, CEO of Satrix; & Len Jordaan, Director, Head of South Africa and sub-Sahara Africa Sales at S&P Dow Jones Indices, and they talk about the rise and future of ETFs.

Wanna split £100? You get £50 free AND save money on 100% green electricity by moving to Octopus Energy. Plus I get £50 to support this podcast but ONLY if you do it by using my unique referral code. I moved to Octopus recently and had been putting it off for ages,  but I kicked myself for not doing it sooner, as it’s literally a 5 minute job to give them your details.   Click here: https://share.octopus.energy/free-puma-452   On today’s podcast: Tesla Finally Added To S&P500 Seamless car charging comes to Electrify America with Plug&Charge First Look at Rivian’s configurator and option list Volkswagen Electric Drivetrain Production Begins in China Chinese Tesla Model 3 Increases Production China Hits 1.5 Million Chargers EU to tighten Euro 7 emissions standard for all tests Lordstown Motors: Endurance Production To Begin In September 2021 Citroen UK reveals a range of retail offers for new e-C4 – 100% electric EV subscription provider Onto orders 600 EVs from PSA Groupe 2021 Toyota Mirai trim levels and features   Show #930   Good morning, good afternoon and good evening wherever you are in the world, welcome to EV News Daily for Tuesday 17th November. It’s Martyn Lee here and I go through every EV story so you don't have to.   Thank you to MYEV.com for helping make this show, they’ve built the first marketplace specifically for Electric Vehicles. It’s a totally free marketplace that simplifies the buying and selling process, and help you learn about EVs along the way too.   TESLA FINALLY ADDED TO S&P500 "Tesla (TSLA) is officially going to join the S&P500 and it is sending the stock price on a wild ride in after-hour trading. After lining up profits in now 5 quarters in a row and seeing its valuation surge to become one of the world’s most valuable company, Tesla was expected to join the S&P500 earlier this year."writes electrek: "Now the S&P has announced that Tesla will be included in the next reshuffle coming in December.  The announcement sent Tesla’s stock (TSLA) on a wild ride in after-hour trading. It went up by as much as 12% – adding over $40 billion in market capitalization"   Financial Times wrote: “ Admission to the benchmark, to take effect with the quarterly rebalancing on December 21, comes almost three months after Tesla first qualified to join the S&P 500, potentially adding to demand for its shares from new investors who track the index. V  The stock rose earlier this year as investors anticipated its elevation to the index, only to retreat after S&P Dow Jones Indices passed on it over in several index reshuffles.”   https://electrek.co/2020/11/16/tesla-tsla-surges-greenlight-sp500/   SEAMLESS CAR CHARGING COMES TO ELECTRIFY AMERICA WITH PLUG&CHARGE "Fast charging your electric vehicle at an Electrify America station just got a lot more seamless—at least for some electric vehicles. That's because the company has now implemented Plug&Charge, the user-friendly name for the ISO 15118 standard that enables an electric car to talk to the charger and handle authentication and billing." says ArsTechnica..   https://arstechnica.com/cars/2020/11/electrify-americas-ev-chargers-now-support-plugcharge/   FIRST LOOK AT RIVIAN’S CONFIGURATOR AND OPTION LIST 10 colours. 3 wheels (20" all terrain, 21" road and 22" sport). Pull-out kitchen is $5000. Launch edition has reinforced underbody shield, duel front tow hooks and an air compressor. That package is $2000 if you don't go for the launch edition. Three interiors, Black, White and Green.   VOLKSWAGEN ELECTRIC DRIVETRAIN PRODUCTION BEGINS IN CHINA "The Volkswagen Group's Chinese components factory in Tianjin has started production of the APP 310 drive units designed for the automakers "MEB" electric vehicle platform, which represents an entirely new way of building cars at Volkswagen. The MEB platform will be the foundation for millions of electric vehicles the automaker plans to produce over the next decade." according to Eric at FutureCar: " The APP 310 electric powertrain will be used in the ID.4 electric SUV and will be produced by two of VW's joint venture partners for vehicles built locally. In Europe, The Volkswagen Group Components facility in Kassel, Germany will produce the APP 310 units for current and future electric VW models for the European and North American markets.  Volkswagen said the factories Kassel and Tianjin are working closely together on the industrialization process for the APP 310 to reduce costs and streamline production. The entire drive unit weighs roughly 90 kg (198 lbs) and is compact enough to fit in a standard-sized duffle bag. "   https://www.futurecar.com/4259/Volkswagen-Aims-to-Be-the-Worlds-Biggest-Producer-of-Electric-Drivetrains-Production-Begins-in-China   CHINESE TESLA MODEL 3 INCREASES PRODUCTION "Now that Tesla Giga Shanghai (Gigafactory 3) is producing the Model 3 not only for the domestic market, but also for exportation to Europe, production is expected to keep on rising. Last month in China 22.929 units of the Tesla Model 3 were produced and 12.143 were sold. Most of these were the Standard Range Plus (SR+) variant that uses cobalt-free LFP battery cells made by CATL." says Pedro for the PushEVs blog: "Tesla’s planned production capacity for next year is 550.000 units, of which 300.000 units for the Model 3 and 250.000 units for the Model Y.   https://pushevs.com/2020/11/16/tesla-model-3-mic-reaches-impressive-production-levels/   EU TO TIGHTEN EURO 7 EMISSIONS STANDARD FOR ALL TESTS "A study by the EU Commission is supposed to form the basis for the new exhaust emission limits. The VDA (German Association of the Automotive Industry) is already warning that the move would result in the combustion engine being phased out from 2025." reports electrive: "The German newspaper Bild reported on a study commissioned by the EU Commission. The study is to form the basis for which limits are to be deduced for the new Euro 7 standard. Apparently, the authors of the study came to the conclusion that significantly stricter exhaust emission regulations than those in the currently valid Euro 6 standard were necessary to achieve climate targets."   Hildegard Müller, President of the VDA: “With the introduction of the planned EU-7 standard, the EU Commission will de facto ban cars with combustion engines from 2025. The problem is not the combustion engine, but the fuel."   https://www.electrive.com/2020/11/16/vda-worried-about-the-euro-7-emissions-standard/   LORDSTOWN MOTORS: ENDURANCE PRODUCTION TO BEGIN IN SEPTEMBER 2021 "Lordstown Motors released today a business update, reaffirming that is on track to begin production of the all-electric Lordstown Endurance pickup in September 2021, "with full production ramping up throughout 2022." says INsideEVS: " The initial plan was to start deliveries in December 2020 (sounds crazy from today's perspective), which was later delayed to: January 2021, Summer 2021, and finally the second half of 2021. According to the press release, deliveries also "are expected to begin in September 2021. Lordstown Motors said that so far it has received approximately 50,000 non-binding production reservations from commercial fleets. The Beta series is envisioned for early 2021 (40-50 units), which will be used for crash, engineering and validation testing. Beta units will be built on the production lines at the Lordstown, Ohio plant."   Areminder, 4 in wheel motors, ladder frame with battery box in the middle, conventional design. Aimed at fleets. 600hp, 80mph top speed. Samsung battery, hub motors by Elaphe.   https://insideevs.com/news/454641/lordstown-motors-endurance-production-begin-september-2021/?utm_source=RSS&utm_medium=referral&utm_campaign=RSS-all-articles   CITROEN UK REVEALS A RANGE OF RETAIL OFFERS FOR NEW E-C4 – 100% ELECTRIC Citroen UK is promoting the launch of new e-C4 – 100% electric with a suite of compelling retail customer offers. New e-C4 is available to order now via the online Citroen Store, and at all Citroen Retailers. First customer deliveries are scheduled for early 2021. Citroen Store, which launched earlier this year in partnership with PSA Finance, offers retail customers the opportunity to complete the entire purchase of their New Citroen C4 or e-C4, exclusively and simply, from the comfort of their own home. Expected around February. 45kWh battery (from 50kWh gross). 100kW DC fast charging. From £29,180. WLTP 217 miles range.   EV SUBSCRIPTION PROVIDER ONTO ORDERS 600 EVS FROM PSA GROUPE PEUGEOT and DS AUTOMOBILES, PSA Groupe’s premium brand, are supplying 300 all-new PEUGEOT e-208 GT Line and 300 DS 3 CROSSBACK E-TENSE all-electric models to electric vehicle subscription service provider Onto, with the cars available to book now. The fleet of 300 all-new PEUGEOT e-208 GT Line models will start to join Onto’s fleet in mid-November, with users able to benefit from home delivery as part of the service. Onto has also placed an order for both DS 3 CROSSBACK E-TENSE Performance Line and Ultra Prestige models. With prices starting from £499 a month for both PEUGEOT e-208 GT Line and DS 3 CROSSBACK E-TENSE for the Performance Line version, Onto users get up to 1,000 miles a month, with insurance, vehicle excise duty, roadside recovery and charging fees all included in the package.   (formerly Evezy)   https://on.to   CHINA HITS 1.5 MILLION CHARGERS Twitter Moneyball @DKurac   As of Oct end, #China #NEV charging pile at 1.498M, +30.9% YoY. Public at 667K. AC: 376K DC: 291K AC/DC: 488 Shanghai, Guangdong, Beijing  led public piles. Guangdong, Shanghai, Jiangsu led public stations. #TELD led operators. Oct charged 710 GWh, +45.4% YoY, -5.2% MoM. (EVCIPA)   Target vehicle per post: 2019 was at 3.13:1 2025: 2:1 2030: 1:1   Out of 1.188M tracked #China #NEV, 30.1% did not have allocated #charging pile. Lack of parking space, property manager not cooperating and employer offering charger made 70.2% of reasons for not having allocated pile. (EVCIPA)     "#China Jan-Oct #FCEV sales at 658, -50.4% YoY. Production at 647, -53.5% YoY. Outbreak and OEMs waiting for national FCEV subsidy policy affected the results."     2021 TOYOTA MIRAI TRIM LEVELSAND FEATURES "The 2021 Mirai switches to Toyota's Premium Rear-Wheel-Drive Platform and for the first time will be offered in two trim levels: XLE and Platinum. Both come standard with an 8-inch digital instrument cluster and a 12.3-inch infotainment display. The latter includes Apple CarPlay, Android Auto, and Amazon Alexa capability." says Autoblog: "Heated front seats, 19-inch wheels, side-window sunshades, power-folding mirrors and Toyota's SofTex synthetic leather upholstery also are standard. The Limited adds heating for the rear seats and ventilation for both the front and rear seats, a head-up display, a 360-degree-view camera, automated parking, a panoramic sunroof, and a touchscreen for the rear-seat passengers to operate their own climate control. the outgoing, 2020-model Mirai (offered in a single trim level) carries an MSRP of $58,550 and leases for $339 per month with $2,499 down. Like that version, the new Mirai will be available in California and Hawaii for purchase or lease."   https://www.autoblog.com/2020/11/16/2021-toyota-mirai-trims-features/   You can listen to all 930  previous episodes of this this for free, where you get your podcasts from, plus the blog https://www.evnewsdaily.com/ – remember to subscribe, which means you don’t have to think about downloading the show each day, plus you get it first and free and automatically.   It would mean a lot if you could take 2mins to leave a quick review on whichever platform you download the podcast.   And  if you have an Amazon Echo, download our Alexa Skill, search for EV News Daily and add it as a flash briefing.   Come and say hi on Facebook, LinkedIn or Twitter just search EV News Daily, have a wonderful day, I’ll catch you tomorrow and remember…there’s no such thing as a self-charging hybrid.     PHIL ROBERTS / ELECTRIC FUTURE (PREMIUM PARTNER) BRAD CROSBY (PREMIUM PARTNER) AVID TECHNOLOGY (PREMIUM PARTNER) PORSCHE OF THE VILLAGE CINCINNATI (PREMIUM PARTNER) AUDI CINCINNATI EAST (PREMIUM PARTNER) VOLVO CARS CINCINNATI EAST (PREMIUM PARTNER) NATIONALCARCHARGING.COM and ALOHACHARGE.COM  (PREMIUM PARTNER) DEREK REILLY FROM THE EV REVIEW IRELAND YOUTUBE CHANNEL (PREMIUM PARTNER) RICHARD AT RSYMONS.CO.UK – THE ELECTRIC VEHICLE SPECIALIST (PREMIUM PARTNER)   DAVID AND LISA ALLEN (PARTNER) OEM AUDIO OF NEW ZEALAND AND EVPOWER.CO.NZ (PARTNER) GARETH HAMER eMOBILITY NORWAY HTTPS://WWW.EMOBILITYNORWAY.COM/  (PARTNER) BOB BOOTHBY – MILLBROOK COTTAGES AND ELOPEMENT WEDDING VENUE (PARTNER) DARIN MCLESKEY FROM DENOVO REAL ESTATE (PARTNER) JUKKA KUKONEN FROM WWW.SHIFT2ELECTRIC.COM RAJEEV NARAYAN (PARTNER)   ALAN ROBSON (EXECUTIVE PRODUCER) ALAN SHEDD (EXECUTIVE PRODUCER) ALEX BANAHENE (EXECUTIVE PRODUCER) ALEXANDER FRANK @ https://www.youtube.com/c/alexsuniverse42 ANDERS HOVE (EXECUTIVE PRODUCER) ANDREA JEFFERSON (EXECUTIVE PRODUCER) ANDREW GREEN (EXECUTIVE PRODUCER) ASEER KHALID (EXECUTIVE PRODUCER) ASHLEY HILL (EXECUTIVE PRODUCER) BÅRD FJUKSTAD (EXECUTIVE PRODUCER) BRIAN THOMPSON (EXECUTIVE PRODUCER) BRUCE BOHANNAN (EXECUTIVE PRODUCER) CHARLES HALL (EXECUTIVE PRODUCER) CHRIS HOPKINS (EXECUTIVE PRODUCER) CHRISTOPHER BARTH (EXECUTIVE PRODUCER) COLIN HENNESSY AND CAMBSEV (EXECUTIVE PRODUCER) CRAIG COLES (EXECUTIVE PRODUCER) CRAIG ROGERS (EXECUTIVE PRODUCER) DAMIEN DAVIS (EXECUTIVE PRODUCER) DAVE DEWSON (EXECUTIVE PRODUCER) DAVID FINCH (EXECUTIVE PRODUCER) DAVID MOORE (EXECUTIVE PRODUCER) DAVID PARTINGTON (EXECUTIVE PRODUCER) DAVID PRESCOTT (EXECUTIVE PRODUCER) DON MCALLISTER / SCREENCASTSONLINE.COM (EXECUTIVE PRODUCER) ERU KYEYUNE-NYOMBI (EXECUTIVE PRODUCER) FREDRIK ROVIK (EXECUTIVE PRODUCER) GENE RUBIN (EXECUTIVE PRODUCER) GILBERTO ROSADO (EXECUTIVE PRODUCER) GEOFF LOWE (EXECUTIVE PRODUCER) HEDLEY WRIGHT (EXECUTIVE PRODUCER) IAN GRIFFITHS (EXECUTIVE PRODUCER) IAN SEAR (EXECUTIVE PRODUCER) IAN (WATTIE) WATKINS (EXECUTIVE PRODUCER) JACK OAKLEY (EXECUTIVE PRODUCER) JAMES STORR (EXECUTIVE PRODUCER) JIM MORRIS (EXECUTIVE PRODICERS) JON AKA BEARDY MCBEARDFACE FROM KENT EVS (EXECUTIVE PRODUCER) JON MANCHAK (EXECUTIVE PRODUCER) JUAN GONZALEZ (EXECUTIVE PRODUCER) KEN MORRIS (EXECUTIVE PRODUCER) KEVIN MEYERSON (EXECUTIVE PRODUCER) KYLE MAHAN (EXECUTIVE PRODUCER) LARS DAHLAGER (EXECUTIVE PRODUCER) LAURENCE D ALLEN (EXECUTIVE PRODUCER) LEE BROWN (EXECUTIVE PRODUCER) LUKE CULLEY (EXECUTIVE PRODUCER) MARCEL WARD (EXECUTIVE PRODUCER) MARK BOSSERT (EXECUTIVE PRODUCER) MARTY YOUNG  (EXECUTIVE PRODUCER) MATT PISCIONE (EXECUTIVE PRODUCER) MIA OPPELSTRUP (PARTNER) MICHAEL PASTRONE (EXECUTIVE PRODUCER) MIKE WINTER (EXECUTIVE PRODUCER) NATHAN GORE-BROWN (EXECUTIVE PRODUCER) NEIL E ROBERTS FROM SUSSEX EVS (EXECUTIVE PRODUCER) NICHOLAS MILLER (EXECUTIVE PRODUCER) NIGEL MILES (EXECUTIVE PRODUCER) OHAD ASTON (EXECUTIVE PRODUCER) PAUL RIDINGS (EXECUTIVE PRODUCER) PAUL STEPHENSON (EXECUTIVE PRODUCER) PETE GLASS (EXECUTIVE PRODUCER) PETE GORTON (EXECUTIVE PRODUCER) PETER & DEE ROBERTS FROM OXON EVS (EXECUTIVE PRODUCER) PHIL MOUCHET (EXECUTIVE PRODUCER) PHILIP TRAUTMAN (EXECUTIVE PRODUCER) RAJ BADWAL (EXECUTIVE PRODUCER) RENE KEEMIK (EXECUTIVE PRODUCER) RENÉ SCHNEIDER (EXECUTIVE PRODUCER) RICHARD LUPINSKY (EXECUTIVE PRODUCER) ROB HERMANS (EXECUTIVE PRODUCER) ROB FROM THE RSTHINKS EV CHANNEL ON YOUTUBE (EXECUTIVE PRODUCER) RUPERT MITCHELL (EXECUTIVE PRODUCER) SEIKI PAYNE (EXECUTIVE PRODUCER) STEPHEN PENN (EXECUTIVE PRODUCER) STEVE JOHN (EXECUTIVE PRODUCER) THOMAS J. 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Tesla Will Join S&P 500 in December as Largest-Ever New Member Leave a Like if you enjoyed! Subscribe to be a Box and enable notifications! ► https://www.youtube.com/channel/UC0n7VW-Nfwb8tJkMePslIuA?sub_confirmation=1  Learn To Make Money Online: http://bit.ly/4StepsToMakeMoneyOnline Master Your Money: http://4dmbox.com Instagram: http://bit.ly/2vnbZOt @4dmbox Podcast Links: [Money and Business News] APPLE https://itunes.apple.com/us/podcast/4dmbox/id1373830164 SPOTIFY https://open.spotify.com/show/0R0htid4uuu1BjsmkH7xbv GOOGLE https://www.google.com/podcasts?feed=aHR0cHM6Ly9hbmNob3IuZm0vcy8zNjhlNmU0L3BvZGNhc3QvcnNz Directly Support The Podcast https://anchor.fm/4dmbox/support BITCOIN WALLET 19eDphRZPWSVwr24bw8om8bisk9uX6KwH8 LITECOIN WALLET LQfXXTXpX5sdTpGfTUL6CyyLSXrXaxZGCa ETH 0x518772e64228a3B8BF785Ef8CFc65Eed0356116E Make Money Tools: GET FREE BITCOIN WHEN YOU BUY OR SELL $100 OF CRYPTO ► https://www.coinbase.com/join/jr_e1dx Robinhood [Get up to a free $500 stock by joining] ► http://bit.ly/Freestocks4dmbox Acorns [Automate your investing by rounding up your loose change and putting them into index funds] ► http://bit.ly/Passiveinvesting Create A Sales Funnel [clickfunnels 14 day free trial] ► http://bit.ly/2Q9Vi1f Tags: finance, business, news, money news, stock market, business news, loans, debt, investing, making money, making money online, tech, personal finance, credit cards, debit cards, banks, money, 4dmbox, 4dmbox.com, #tesla #indexfunds #stockmarket #4DMBOX Tesla Will Join S&P 500 in December as Largest-Ever New Member Tesla Inc., Elon Musk’s 17-year-old upstart carmaker, took a giant step toward blue-chip respectability on Monday, getting named to one of the world’s most famous stock indexes in an action that will greatly broaden its investor base. The announcement that Tesla will enter the S&P 500 on Dec. 21 follows months of speculation, and one temporary setback, after the stock failed to make the cut during the index’s quarterly rebalancing in early September. The anticipation has helped drive a nearly fivefold rally in the stock this year, making the Palo Alto, California-based electric vehicle pioneer the biggest company ever to be added to the gauge, at nearly $390 billion of market value. It will also be one of the index’s most influential constituents with a weighting that falls around those of Berkshire Hathaway Inc., Johnson & Johnson and Procter & Gamble Co. It’s so big that S&P Dow Jones Indices said it is seeking feedback from the investment community to determine if Tesla should be added all at once or in two separate pieces. The company that Tesla is to replace in the index will be named later, the index provider said. Tesla shares gained as much as 9.8% to $448 in extended New York trading on the news. --- Support this podcast: https://anchor.fm/4dmbox/support

Shaun Wurzbach is the Managing Director, Channel Management and Solutions at S&P Dow Jones Indices. He joins Clayton to discuss who exactly is leading the charge in ESG Investing on a global scale. Shaun Wurzbach LinkedIn: https://www.linkedin.com/in/shaun-wurzbach-43a97214/ SPG Global Website: https://www.spglobal.com/spdji/en/ This ethical podcast series is sponsored by SPDR ETFs. To find out more about their latest ESG ETF, the SPDR S&P/ASX 200 ESG Fund, visit www.ssga.com/e200 Join the XY platform: App Store: http://co.xyadviser.com/xyistore Google Play: http://co.xyadviser.com/xygplay Desktop: https://www.xyadviser.com/ S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment product or vehicle that seeks to provide an investment return based on the performance of any index. S&P Dow Jones Indices LLC is not an investment or tax advisor. S&P Dow Jones Indices makes no representation regarding the advisability of investing in any such investment fund or other investment product or vehicle. General Disclaimer – https://www.xyadviser.com/disclaimer/

US equity markets resumed trading following the Labor Day holiday with steep falls, with Technology stocks under fresh selling pressure - Dow dropped -632-points or -2.25%. Boeing Co fell -5.8% after the Wall Street Journal reported that production problems at a 787 Dreamliner factory prompted air-safety regulators to review quality-control lapses that could stretch back almost a decade. JPMorgan Chase & Co fell -3.5%, after the banks said it found evidence of employees and customers misusing the government's flood of stimulus funds this spring and is cooperating with authorities The broader S&P500 shed -2.78% to cap its worst three day stretch (down -%) since June. The technology-centric NASDAQ tumbled -4.11% to 10,847.69, booking its quickest slide ever from a record close to correction territory after falling 10.03% from its record closing high of 12,056.44 on 2 September. A correction is typically defined as a drop of at least 10% from the prior closing high, which the Nasdaq accomplished overnight after only three trading sessions. Apple Inc fell -6.7% and logged its worst three-day slump since October 2008, according to Bespoke Investment Group. Tesla Inc fell -21.06% (to US$331.21) to log a record one-day decline after S&P Dow Jones Indices on Friday (4 September) unexpectedly decided not to include the electric-vehicle maker in the S&P500 as part of their latest re-balance.

Yet another round of record closing highs for the both the S&P500 and Nasdaq as investors digested positive news on the US-China trade front and eyed the Federal Reserve's annual symposium on monetary policy which kicks off tonight AEST - Dow up +83-points or +0.30% to 28,331.92 and is now just 1.02% shy of turning positive for the year and just 4.1% below its 12 February record closing high of 29,551.41. The broader S&P500 gained +1.02% to 3,478.73 and locking in its 18th record closing high for the year. The latest gains left the S&P 500 up more than 58% since hitting an intraday low on 23 March. Salesforce.com Inc surged +26.04% after the cloud-based customer-relationship-management company announced quarterly results after the closing bell of the previous session that topped forecasts as its revenues hit US$5B for the first time. The company also was benefiting from Monday's (24 August) announcement by S&P Dow Jones Indices that it would be among a trio of companies to be included in the Dow Jones Industrial Average, effective Monday (31 August). The technology-centric NASDAQ +1.74% to 11,665.06 and marking its 39th record closing high of 2020. Netflix Inc rose +11.61% to US$547.53 on big volume (20.1M shares versus its 50-day average volume of 7.3M) and near its highest level since 13 July (US$575.37). Facebook Inc rose +8.22% (to US$303.91), closing above >US$300 per share for the first time. Tesla Inc rose +6.42% (and saw its market capitalisation top >US$400B), buoyed by analysts at Jefferies lifting their target price to US$2,500 from US$1,200. Analysts noted that "Tesla's competitive edge in cars may soon start to shrink but continues to widen in multiple other dimensions, from brand leverage and software to battery capacity and industrial efficiency" and also pointed to the company's Battery Day on 22 September, where the company could “set new benchmarks and ambitions for battery density, materials and industrial processes leading to pack costs

•The S&P500 and Nasdaq climbed to fresh record highs - Dow down -60-points or -0.21% a day after S&P Dow Jones Indices announced an overhaul of its composition of the blue chip index (that included the removal of near 100-year member Exxon Mobil Corp (down -3.17%). Apple Inc logged its first decline in six sessions, settling -0.82% lower. Boeing Co fell -1.99%. The broader S&P500 gained +0.36% The technology-centric NASDAQ +0.76% to 11,466.17, logging its 38th record closing high of 2020. Facebook Inc rose +3.47%, buoyed by an upgrade from UBS. In merger and acquisition (M&A) news, Cisco Systems Inc announced it intends to acquire BabbleLabs, which has developed noise-removal and speech-enhancement technology. Terms were not disclosed.

Fiona Boal, Global Head of Commodities & Real Assets at S&P Dow Jones Indices, discusses the performance of gold through the crisis — looking specifically at gold supply, gold demand, and how "the currency of last resort" has appealed to investors over the past six months.

Mona Naqvi, Head of ESG Product Strategy, North America at S&P Dow Jones Indices, discusses the issue of intersectionality for investment strategy, the difference between engagement and divestment, and the challenge of social measurement.

Priscilla Luk, Managing Director, Head of Global Research & Design, Asia Pacific at S&P Dow Jones Indices, discusses the early signs of an economic recovery in China, the changing relationship between China and emerging markets, and the challenges for deleveraging the Chinese economy during the recovery.

Reid Steadman, Head of Environmental, Social, and Governance (ESG) Indices at S&P Dow Jones Indices, joins The Essential Podcast to discuss the role of ESG in the midst of the global pandemic and a major economic slowdown. He explains how the experience of the lockdown may prepare us for further action on ESG and what the ESG market can do to expand its reach and appeal.

Less than two months ago, the S&P 500 and the Dow were riding to record highs after 11 years of unprecedented economic expansion. In the time since, the market has seen steep drops and slightly fewer steep rises. An oil price war and the global coronavirus pandemic have each contributed to historically high levels of volatility. Is a jittery market the new normal, or just a passing phase? In conversation with host Nathan Hunt, Craig Lazzara, Managing Director for Investment Strategy at S&P Dow Jones Indices, discusses record market volatility, the VIX, and Russian literature.

US equity markets ended the month and quarter in the red to leave both the Dow and S&P500 nursing their worst first quarter performance ever - Dow down -410-points or -1.84%, paring a climb of as much as much as +152-points. The broader S&P500 shed -1.6% . S&P Dow Jones Indices announced after the closing bell that retailer Macy's Inc will depart the S&P500 (along with Raytheon Co following the expected completion of their merger with United Technologies Corp) and join the S&P SmallCap 600. Otis Worldwide Corp and Carrier Global Corp will join the S&P 500. The changes come into effect at the opening of the market this Friday night AEST (3 April). The NASDAQ fell -0.95%. In merger and acquisition (M&A) news, Xerox Holdings Corp announced that is has dropped its ~US$30B hostile takeover bid to acquire larger rival HP Inc because of the uncertainty created by the COVID-19 pandemic

Welcome to the Making Margin podcast! Greenway’s team is here to discuss common financial mistakes and to help you navigate them. Meet the voices behind Making Margin:NickAllie  JeffDrewToday’s topic is why investing should be boring. We take a broad look at what we believe investing should look like and why.Discussion Topics:How we design a portfolio for our clientsHow we use decades of historical data to guide our investment processA 2016 study by S&P Dow Jones Indices showed that about 90 percent of active stock managers failed to beat their index targets over the previous one-year, five-year and 10-year periods; fees explain a significant part of that under performance.What exactly is an ETF, stock, bond, mutual fund, etc.?What’s the most important predictor of a relative investment return? Morningstar: https://www.morningstar.com/articles/347327/articleWhat other types of fees should people be looking for?A lot of people now have target dated funds in their 401k. Positives and negatives?Investing is like amateur tennis Take Away: If investing seems boring to you, you’re probably doing something right. 

Environmental, social, and governance (ESG) factors are of dramatically increasing interest to investors who are concerned about companies adopting practices that will mitigate risk and ensure their long-term sustainability. As a result, ESG risks and opportunities are increasingly shaping the way companies do business around the globe. But how important is gender in ESG? In this episode, Sonja Gibbs, Managing Director and Head of Sustainable Finance at the Institute of International Finance, Mona Naqvi, Senior Director of ESG Product Management at S&P Dow Jones Indices, and Audrey Choi, Chief Marketing Officer and Chief Sustainability Officer at Morgan Stanley, discuss their respective interpretations of gender’s role in ESG.

What are the latest changes On Friday, Asia Index announced that Automobile giant Tata Motors, Tata Motors DVR (Tata Motors with differential voting right ), along with lender Yes Bank, and natural resources major Vedanta will be dropped from the BSE's benchmark Sensex. In their places, UltraTech Cement, Titan Co Ltd and Nestle India will be added to the index. The changes will be effective from Monday, December 23, 2019, Asia Index said in a statement. Besides, UPL Ltd and Dabur India will find a place in the S&P BSE Sensex 50, replacing Indiabulls Housing Finance and Yes Bank. However, there was no change in the S&P BSE Bankex. Why does the reshuffle happen This is a part of the reconstitution exercise by Asia Index, which is a joint venture between S&P Dow Jones Indices and the BSE. This involves re-evaluation of the constituents of a particular index. It deals with addition and removal of stocks from the index and their re-ranking based on the current market situation. Since the Sensex shows which way the economy is heading, a periodic reshuffle of the 30-share portfolio is carried out. Some stocks are included while some others get the boot.   Why were few stocks dropped from Sensex recently In the latest reshuffle Tata Motors was taken out of the index. This happened because the stock has under-performed the benchmark index amid slowdown in the the domestic automobile sector over the last few months. Shares of Tata Motors on Tuesday( Nov 26) closed 1.36 per cent lower at Rs 163.80 on the BSE.  Similarly, the private sector lender Yes Bank  has been going through a rough phase lately. This is because of the worries regarding asset quality. Yes Bank shares have dipped around 65 per cent till date.  Shares of Yes Bank fell nearly 4 per cent in intraday trade on Monday after the announcement that it will be dropped from BSE benchmark Sensex from December 23.  The year has not been a rewarding one for investors of the mining and metals stock Vedanta too, with the stock falling almost 30 per cent.   How will this affect investors Most direct investors in stocks watch Sensex and Nifty closely for clues in the market. It is simply because the stocks in these are supposed to be the best, in performance, earnings and other key parameters. The moment a periodic reshuffle is carried out in the Sensex, there is a lot of buzz as retail investors carefully look at the stocks comprising these benchmark indices. Immediately, the ousted stocks start falling sharply, whereas the those coming in start rising.  When a stock goes out or enters the index, number of global and domestic index funds alter their portfolio as they mirror the benchmark indices. And thereby they have to buy all the stocks in the index and in the same proportion. For stocks exiting the index, there is a sharp fall because fund managers want to/have to exit these stocks to balance their portfolios. As a result, they sell, sometimes in big tranches. So, from being over-owned, these stocks become under-owned. For individual retail investors, experts say buying one when it enters the index can be a good strategy. But, it has to be within a day or two of the announcement, as fund managers rush to rebalance their portfolios. If you miss the bus in the initial days, it makes more sense to wait for the first quarterly results.  Listen to the podcast to know more

Our guest today on The Long View podcast is Rick Ferri. Ferri is an hourly fee-only investment consultant at Ferri Investment Solutions; he's also a CFA charterholder. Prior to starting his new firm in April 2019, he was the founder and head of investing at a $1.5 billion advisory firm that specialized in low-fee asset management using index funds and exchange-traded funds. Prior to that, he worked for a brokerage firm, where he was an early adopter of inexpensive index products for client portfolios. Ferri is a Marine Corps officer and retired fighter pilot. Ferri has written several books on low-fee investing, including All About Asset Allocation, The ETF Book, All About Index Funds, and The Power of Passive Investing. He has also authored numerous investment-related articles and research papers, including a research paper on index investing that won S&P Dow Jones Indices' third-annual SPIVA Award. Introduction and Background Rick Ferri's bio  Ferri's philosophy  Ferri Investment Solutions  Ferri's books Ferri's Forbes column "Bogleheads on Investing" podcast hosted by Rick Ferri "Ferri: 3 Keys to a Successful Investment Strategy," Morningstar.com video "The conversation about asset allocation comes later, and the conversation about investments comes after that." Ferri discusses how his definition of value-add has changed over the past 10-15 years. (0:55-3:24) "I've been through the whole gantlet." Transitioning from broker to Registered Investment Advisor. (3:25-5:14) On clients who have needs that go beyond investment management. (5:15-5:56) "You get the work done, you pay for the work." Why Ferri's new advisory practice charges clients by the hour, not by their assets under management. (5:57-9:44) "Rick Ferri, Back in Business, Drops Bomb on AUM Model," ThinkAdvisor article "Move Over 1% Advisor Fee: Change Is Here," Ferri's blog post on Forbes  "Advisors talk about how they add value behaviorally; I think a lot of that is created by the advisor and not so much by the client." The role of advisors in managing client behavior. (9:45-11:12) Asset Allocation "Ferri: 3-Fund Portfolio the Simplest Way to Best Return," Morningstar.com video Ferri's Core-4 Portfolios "There are no average investors." How investors of the same age can vary widely in their appetite for equity risk. (11:13-15:03) "Those are the things that are going to add value to a client's portfolio." Focusing on keeping taxes and investment costs down, not trying to play factors. (15:03-18:21)  "There seem to be a lot of factor renters, rather than factor owners." Ferri is skeptical that factor investing will outperform in the future. (18:23-20:44) Factor investing defined Dr. Wesley Gray interview on factor investing, "Bogleheads on Investing" podcast   "I don't use anything that doesn't have an expected real return." Why Ferri sticks with plain-vanilla asset classes. (20:45-21:56) How to go about making return assumptions for the major asset classes. (21:57-24:14) "It depends on how much money the client has." A total bond market index as a one-stop option for fixed-income exposure. (24:15-27:20) International bonds as a core asset class. (27:21-28:46)  "Global Fixed Income: Considerations for U.S. Investors," Vanguard research paper "Six Advisors on Investing in International Bonds," OregonLive article "I don't think they're pivotal." REITs as a direct allocation.  (28:47-31:45) "REITs and Your Portfolio," Ferri's Forbes blog post Decumulation   "The software doesn't seem to be very good at this." Decumulation is inherently more complicated and customized than accumulation. (31:46-34:19) "There seem to be better ways of doing it than the classic way in which we've been taught." On whether the traditional declining equity glide path makes sense. (34:20-39:28) Indexing and the Legacy of Jack Bogle "It's been around forever." Direct indexing: the wave of the future? (39:29-42:09) "Could Direct Indexing Help Your Portfolio?" Forbes blog post by Simon Moore "I don't see it as big of a threat as other people do." Should investors be worried about concentration in very few ETFs, and do index funds and ETFs own too much of the market? (42:10-44:07) "I was having a real moral dilemma." How influential Jack Bogle was in shaping Ferri's career path. (44:08-46:08) "The Worth of a Man: A Tribute to John C. Bogle," Forbes blog post Ferri's interview with Bogle, "Bogleheads on Investing" podcast "Vanguard Founder Jack Bogle Passes Away," Morningstar.com article

New S&P ESG 500 products will promote sustainable investing and offer needed diversification for most ethical investors. Sustainable assets leap 34% to $30.7 trillion in 2 years globally. Green bond awards help ethical and sustainable investors find green fixed income products. Ethical investors avoid Lyft IPO and suspicious of social media companies with regulatory issues. Transcript & Links April 12, 2019 Hello, Ron Robins here. Welcome to my podcast Ethical & Sustainable Investing News to Profit By! Presented by Investing for the Soul, April 12, 2019. Now again, if any terms are unfamiliar to you, simply Google them! Also, you can find a full transcript, live links and sometimes bonus material at my podcast page located at investingforthesoul.com/podcasts News Now for the exciting news to profit by for ethical and sustainable investors! The first item I want to talk about is that with all the news concerning Facebook and Google regarding the regulatory pressures they’re facing around the world, it means that somehow, investors have to take into account the potential for severe disruption in their business models and possible negative impacts on their profitability and stock prices. So this post, titled, A regulatory lens when assessing ESG risks, by Sudhir Roc-Sennet, of Vontobel Asset Management, writing in Investment Europe, is truly pertinent. Sudhir says that and I quote, "Internally we look at sustainability through an ESG-R lens, which includes regulation alongside environmental, social and governance factors. Many of our investment companies have held leading industry positions and, as a result, regulation is one of the greatest risks they face." Close quote. You might be aware that your ESG portfolio is probably top heavy with tech and social media companies. So, a review of your holdings in light of regulatory risk might be warranted. Financial stocks too are often overweighted in our ESG portfolios. So, come the next recession – which two-thirds of American economists predict in the next two years – financial stocks could again become the subject of significant regulatory and financial risk. So be careful about overweighting in sectors that have potential regulatory risks. ------------------------------------------------------------- This next piece of news excites me. It’s title, S&P unveils ESG version of 'iconic' 500 index, by Chris Sloley at CityWire Selector. I quote, "S&P Dow Jones Indices has launched an ESG-centric version of its long-running S&P 500 index as part of plans to launch a wider family of responsibility-focused indices... The index has been developed to serve not only as a performance tracking tool but also as a building block for creating new ESG index-based investment products such as ETFs." Close quote. This is exciting news for ethical and sustainable investors. The S&P 500 index and financial products based on it, are among the most popular financial products to have ever been conceived. RobecoSAM will be creating the index. They also are responsible for the FTSE4Good index. I believe many large financial institutions and pension funds have been awaiting this development to make even greater investments in ESG related investment vehicles. For yourself as well, financial products arising from this could help resolve the problem I just mentioned. That is, not being overly invested in one market segment such as tech or social media. An S&P 500 ESG product will likely be quite diversified. However, I do say that though the components of this new index will be screened for ESG characteristics – you will inevitably be investing in some industries you don’t like. Thus, if this is a concern for you, take my quick and easy DIY Ethical-Sustainable Investing Pays Tutorial to learn how to create a diversified portfolio that truly reflects your values. ------------------------------------------------------------- Now the following is information that many of you will want to know about! What are the best green bonds around! Environmental Finance in London assembled a team of 24 top green bond experts to come up with the… Winners of Environmental Finance Bond Awards for 2019. These awards aren't about which green bonds made investors the most money, but, rather, included characteristics such as quality, innovativeness, best practices, etc. Nonetheless, if you're wanting to invest in, or add to your present green bond holdings, you might find some ideas among the winning green bonds here. Don’t forget, go to my podcast page at investingforthesoul.com/podcasts and go to this show date for links I’m mentioning today. ------------------------------------------------------------- Speaking about investing with your personal values, I know many ethical and sustainable investors wouldn’t touch oil fracking stocks. And a lot of it is because of the environmental costs posed by fracking. Unfortunately, as a Canadian report makes clear on David Suzuki’s site – the famed Canadian biologist-environmentalist – the impacts of fracking are still largely unknown and it’s the next generation who’ll feel these impacts! See the post, As fracking booms, report finds we know little about impacts. ------------------------------------------------------------- Now some great news about the growth of sustainable investing. There are two posts I want to talk about. The first, Global Sustainable Investments Rise 34 Percent to $30.7 Trillion, by Emily Chasan, Bloomberg, and the second Greenwashing purge sees sustainable funds lose share in Europe, by Siobhan Riding, of the Financial Times. Both stories reveal data from the same Global Sustainable Investment Alliance study released on April 1. On the one hand, we see a massive and continuing rise in sustainable investing globally. That’s terrific! However, on the other hand, in Europe, the actual rise in sustainable investment assets has been slower than the growth of the whole market. Now, Europe has for many years been the leader in sustainable assets under management, so it’s not a surprise to see it slowing down there. Here’s a quote from the latter article on this point, quote, “Holdings in sustainable funds made up 49 per cent of professionally managed assets in Europe at the start of 2018, compared with 53 per cent in 2016.” Close quote. So, why is it going down, again, quoting the same article, it says, “Sustainable investment funds have lost market share in Europe as a clampdown on greenwashing forces asset managers to reduce their assets in such strategies.” Close quote. And I say that’s a good thing! ------------------------------------------------------------- Hey, were you excited by Lyft’s IPO on March 29? Numerous ethical and sustainable investors weren’t. Why, because early evidence is that they’re putting more cars on the road and pulling people off public transit! Thus, adding to congestion. Also, people are tending to use these services instead of biking or walking. In short, Uber and Lyft seem to be adding to congestion, pollution, and a less healthy lifestyle. Furthermore, they are presently losing money on a grand scale. Annually, Lyft at around $900 million and Uber around $1.8 billion with little prospect of any profits from either of them soon! Lyft’s IPO stock price on March 29 was $72 and as of the time of recording this post, is in the $60 range. For a good read on them go to Environmental investors are calling Uber and Lyft's bluff when it comes to going green, by Ross Kerber & Heather Somerville of Reuters. ------------------------------------------------------------- Now, many of you listening to this podcast in the US have retirement savings accounts through your employer known as 401(k)s. But I bet you've wondered why there aren’t ethical/ESG options? Well, a recent survey by Natixis found that though, I quote, "61% of workers would increase their retirement savings if they could put their money in socially conscious investments… just 13% of workers have access to those kinds of impact investments." End quote. There appear to be several reasons why employers are reluctant to offer ethical/ESG investments in US 401(k) plans. Chief among them, according to the Natixis survey, is that employers don't feel it's right for them to "impose their morals on their employees’ investment choices." Personally, I think that answer is absurd since they're also offering many other options too, which when considered, are also 'moral choices!' In fact, I’d argue that every investment has a moral component! The second principal reason is due to the US Department of Labor making it clear that ESG couldn't be used as the main criteria for selecting investments. This, of course, reflects President's Trump's campaign to promote old and dirty industries – which usually score low on ESG measures. If you are in a situation where your employer isn’t offering the type of 401(k) investments you want to chat with your fellow employees, see how they feel too. If they’re with you, then go to your employer and make it known to them what you want in your investments. You might be surprised that they probably agree with you and just might take the actions necessary to get those ethical/ESG investment options you want! The information on this 401(k) situation is gleaned from an article titled, Workers want those hard-to-find socially responsible investments in their 401(k) plans: Survey, by Lorie Konish of CNBC. ------------------------------------------------------------- In my podcast of March 15, I discussed how some new ETFs were focusing on gender issues because more women in management seem to improve corporate financial performance. However, it seems that some of these funds don’t seriously advocate for women when it comes to stockholder resolutions concerning equal pay and pay equity disclosure, for instance. And that is rather odd. Therefore, if you invest in these funds and care about these issues, read the data gathered by Morningstar in the post Investing with equal pay in mind may be more difficult than you think, by Lorie Konish at CNBC. ------------------------------------------------------------- So, there we have it for this podcast! Again, to read the transcript and get all the links and additional information mentioned here, please go to investingforthesoul.com/podcasts and look for this edition. And remember, I’m here to help you grow in your investment success—and investing in opportunities that reflect your personal values! Please don’t hesitate to contact me if you have any questions about this podcast or anything else investment related. A big thank you for listening—and please click the share buttons to share this podcast with your friends and family. Come again! Bye for now! © 2019 Ron Robins, Investing for the Soul. All rights reserved.

Despite the evidence that past performance is no guide to future performance, investors continue to seek portfolio managers and stock pickers who appear to consistently outperform the market. ----more---- In our recent conversation with Craig Lazarra of S&P Dow Jones Indices, he explained why it is so hard for active fund managers – or any investor – to consistently outperform the market in which they invest. In this fascinating follow up, he explains: Why we continue to believe that past performance will persist (despite warnings and evidence to the contrary) The challenges that face all investors when they seek to beat the market How to spot marketing and advertising that implies consistent outperformance, and His preferred (index) strategy to outperform the big indices. You can access this and previous episodes of the Your Wealth podcast now on iTunes, Podbean or at nabtrade.com.au/yourwealth If you are pressed for time, consider listening at 1.5x or 2x the usual speed – this can actually improve your retention of information while saving time.  

If you’re a Financial Advisor, you probably champion a preferred investment philosophy – active or passive. Though when it comes to having the ‘investment discussion’ with clients, do you really understand how indices work? How often they’re rebalanced? Or how to accurately measure an ETF’s performance? Enter Stuart Magrath (LinkedIn:stuart-magrath-9b6a147/). He’s the Head of Channel Management for the S&P Dow Jones Indices (a business unit within S&P Global) who works with Financial Advisors, educating them on how to incorporate a strong passive investment methodology in their service model. In this insightful episode, you’ll learn: 11:54 – Stuart’s professional career with S&P Dow Indices and whether he thinks there’s no such thing (really) as passive investing 14:38 – The S&P ASX Methodology and where you can learn more about it 15:50 – Does passive investing trump active and what is the SPIVA report? 18:00 - What is the ‘Persistence of Active Funds Report’? 26:16 – How Stuart and his team are working with Financial Advisors 27:45 –What U.S. Advisors are currently doing in the ETF space vs Australia 31:05 – Can Advisors in Australia create their own ETF? How can they do it? 48:08 – Three things that make ETFS a good vehicle for Advisors and clients Show notes: S&P Dow Jones Indices - https://au.spindices.com/ SPIVA® Australia Scorecard (Mid-Year 2018) - https://www.xyadviser.com/wp-content/uploads/2019/01/spiva-australia-mid-year-2018.pdf Persistence of Australian Active Funds Report (Mid-Year 2018) - https://www.xyadviser.com/wp-content/uploads/2019/01/research-persistence-of-australian-active-funds-september-2018.pdf A-VIX - https://au.spindices.com/theme/a-vix/ XY Adviser Online Training Platform - https://www.xyadviser.com General Disclaimer - https://www.xyadviser.com/disclaimer/ This podcast is proudly supported by Netwealth (www.netwealth.com.au), an ASX listed company ranked #1 for overall platform functionality and user satisfaction by Investment Trends for the past three years. Netwealth understands that the Financial Advice landscape is changing and is providing market leading technology to help you explore new perspectives and realise new efficiencies. Through excellent customer service and expertise, Netwealth are working with XY Advisers to innovate and drive Financial Advice forward. --- S&P Dow Jones Indices LLC, S&P, Dow Jones and their respective affiliates (“S&P Dow Jones Indices”) and their third party licensors makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and S&P Dow Jones Indices and its third party licensors shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication or guarantee of future results. Some of the information contained within this podcast or video may represent hypothetical historical performance. Any back-tested information contains inherent limitations and may not result in performance commensurate with the back-test returns shown.   Except for certain custom index calculation services, all information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties and providing custom calculation services. It is not possible to invest directly in an index. Exposure to an asset class represented by an index may be available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment product or vehicle that seeks to provide an investment return based on the performance of any index. S&P Dow Jones Indices LLC is not an investment or tax advisor. S&P Dow Jones Indices makes no representation regarding the advisability of investing in any such investment fund or other investment product or vehicle. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. S&P Global keeps certain activities of its various divisions and business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain divisions and business units of S&P Global may have information that is not available to other business units. S&P Global has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. Please see the Performance Disclosure at http://www.spindices.com/regulatory-affairs-disclaimers/ for more information regarding the inherent limitations associated with back-tested and/or hypothetical performance.”

David Blitzer is our guest in Episode 2 of Bogleheads on Investing.  Dr. Blitzer is the Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices (S&P DJI) with overall responsibility for index security selection, as well as index analysis and management.   In this episode, Dr. Blitzer discusses how S&P and Dow Jones came together under one name to become S&P Dow Jones Indices. He talks about the way securities are selected for the Dow Jones Industrial Average and S&P 500, and how stocks are categorized based on Global Industry Classification Standard (GICS). Dr. Blitzer also explores how the indexing industry changed as index investing became popular. Last, he comments on the difficulties active managers have in outperforming S&P Dow Jones Indices.   Prior to becoming Chairman of the Index Committee, Dr. Blitzer was Standard & Poor’s Chief Economist. Before joining Standard & Poor’s, he was Corporate Economist at The McGraw-Hill Companies (now S&P Global), S&P DJI's parent corporation.   This podcast is hosted by Rick Ferri, CFA, a long-time Boglehead and investment adviser. The Bogleheads are a group of like-minded individual investors who follow the general investment and business beliefs of John C. Bogle, founder and former CEO of the Vanguard Group. It is a conflict-free community where individual investors reach out and provide education, assistance and relevant information to other investors of all experience levels at no cost.   The organization's free website is Bogleheads.org and the wiki site is Bogleheads® wiki. Bogleheads sites are operated by volunteers who contribute time and talent. Donations help defray operating costs.   Since 2000, the Bogleheads' have held national conferences in major cities around the country and currently meet in Philadelphia in the autumn of each year. There are 56 Local Chapters in the US and three Foreign Chapters that also meet regularly. New Chapters are being added on a regular basis.   This podcast is supported by the John C. Bogle Center for Financial Literacy, a non-profit organization approved by the IRS as a 501(c)(3) public charity on February 6, 2012.

J.R. Rieger is the Global Head of Fixed Income Indices at S&P Dow Jones Indices. He joins me on the podcast to discuss:   Active vs Passive fixed income challenges and opportunities Fixed maturity date ETF's Munis vs Corporates in a rising interest rate environment Individual bonds vs Mutual Funds vs ETFs

We are 70 episodes strong! What a ride! As you may have noticed by now, The Fat Wallet Show tries to help you figure out how to think about your money. The theory is if you understand a few surprisingly simple concepts, you have the tools you need to make great financial decisions. Once you have a handle on these concepts, you need a solid financial base. Getting that in place takes about a month, if you focus. We discussed the things you need to understand to make a good financial decision here. To recap, they are: Assets Interest Inflation Compounding Index-tracking products We discussed your financial base in a two-part series on how to structure your pay cheque. Listen to that here and here. To recap, those are: An emergency fund A retirement annuity or pension fund Dread and disability cover Medical aid A tax-free savings account In this episode we bring everything together by telling you how to put together a tax-free ETF portfolio. We discuss diversification by asset class, region, sectors and investment strategies. This is the process we use to put together our ETF portfolios. You can subscribe to those here. We were inspired to revisit this by this slide from an S&P Dow Jones Indices. Check it. This is the @SPGlobal version of our ETF portfolios. Green bonds not available yet locally, but go bananas on the rest. pic.twitter.com/f0onkNKMAk — Kristia van Heerden (@kristiavh) October 17, 2017   We have our first ever giveaway this week. I'll be speaking at the Liberty Retire Well Masterclass on 9 November. To win one of three tickets worth R250, let us know which financial concept or term you think is well understood by everyone but you. Thanks for listening to The Fat Wallet Show! Kris

Fat Wallet regulars know that index-tracking products are at the heart of our investment philosophy. Even Simon, with his individual shares and trading accounts, prefers having at least half of his portfolio invested in exchange-traded funds (ETFs). ETFs are financial products that track the performance of an index. If you struggle to understand what an index is, you'll probably find ETFs difficult to grasp. In the last Fat Wallet episode, we decided to create our own index to illustrate how indices are put together. Zack Bezuidenhoudt from S&P Dow Jones Indices graciously agreed to help us put together an index of Fat Wallet listeners' favourite companies. The rules of the index were entirely made up by me. I was drunk with power. We received 22 submissions between Monday and Wednesday morning. Since some listeners liked the same companies, we decided to give more weighting to companies that received more nominations. We are therefore happy to announce the world's first index weighted by love. Probably. We capped the exposure of each company at 10% to avoid over-exposure to an individual share. We also opted for a variation on an equal-weighted index. The result is an index as diverse and colourful as the Fat Wallet audience. You can have a look at the complete working document here. And finally, below for your viewing pleasure, is the Fat Wallet Love Index, organised by weighting. Kris

Option Block 309: The Big AAPL Earnings Show   Trading Block: Markets reverse most of today's slide late in the session. Lots of index volatility, but not many buyers. VIX coming off later in the session. Big Apple earnings after the bell, and right in Tosaw's crosshairs. The International Securities Exchange (ISE) has not appealed a federal court decision that rejected ISE's attempt in the New York courts to challenge S&P Dow Jones Indices' (SPDJI) rights to control the use of the S&P 500 and the Dow Jones Industrial Average as the basis of index options. Odd Block: Puts trade in iShares MSCI Emerging Markets ETF (EEM), calls trade in Time Warner Inc. (TWX), and calls trade in Mechel OAO (MTL) Xpress Block: Nat Gas and the 10-year very busy on the desk. Apple, MasterCard, Caterpillar, F5 Networks and VIX also very active. Strategy Block: It's fruit day! Tosaw also discusses his current position in the Russell. Around the Block: Apple update, Fed meeting, and President Obama's State of the Union address.

Option Block 309: The Big AAPL Earnings Show Trading Block: Markets reverse most of today's slide late in the session. Lots of index volatility, but not many buyers. VIX coming off later in the session. Big Apple earnings after the bell, and right in Tosaw's crosshairs. The International Securities Exchange (ISE) has not appealed a federal court decision that rejected ISE's attempt in the New York courts to challenge S&P Dow Jones Indices' (SPDJI) rights to control the use of the S&P 500 and the Dow Jones Industrial Average as the basis of index options. Odd Block: Puts trade in iShares MSCI Emerging Markets ETF (EEM), calls trade in Time Warner Inc. (TWX), and calls trade in Mechel OAO (MTL) Xpress Block: Nat Gas and the 10-year very busy on the desk. Apple, MasterCard, Caterpillar, F5 Networks and VIX also very active. Strategy Block: It's fruit day! Tosaw also discusses his current position in the Russell. Around the Block: Apple update, Fed meeting, and President Obama's State of the Union address.