Forecasting Asset Class Returns (2024 Level III CFA® Exam - Reading 2)

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Topic 1 - Capital Market Expectations
Reading 2 - Forecasting Asset Class Returns
LOS : Discuss approaches to setting expectations for fixed-income returns.
LOS : Discuss risks faced by investors in emerging market fixed-income securities and the country risk analysis techniques used to evaluate emerging market economies.
LOS : Discuss approaches to setting expectations for equity investment market returns.
LOS : Discuss risks faced by investors in emerging market equity securities.
LOS : Explain how economic and competitive factors can affect expectations for real estate investment markets and sector returns.
LOS : Discuss major approaches to forecasting exchange rates.
LOS : Discuss methods of forecasting volatility.
LOS : Recommend and justify changes in the component weights of a global investment portfolio based on trends and expected changes in macroeconomic factors.

[@anhtuanoan3505]

Can you explain again why increasing investment in the country with strong growth will weaken that currency? (From 52:08). I thought increasing investment from global investor to that country will strengthen the currency.

[@michaelewens8142]

Thank you very much for the Level 3 videos. Slow start for my August exam :)

[@joelmartin82]

Same here! Good luck.

[@analystprep]

You're welcome. We should be able to release *most* of the videos for the August 2023 exam on KZbin. Best of luck in your studies!

[@KyleBaran90]

Watching through a bunch of these videos, this is fantastic, high quality stuff. Looking forward to seeing what else I can learn. It always amazes me how often Yahoo Finance is recommended or used by professionals. You wouldn't think to use a site like that, but it's simple and gets you most of the general information you need on equities.

[@lucasmartin4883]

This chapter is badly written in my opinion (many bold statements with no explanation, with bad flow in the sections at times) and this video really helps

[@analystprep]

Thanks!

[@jiangxu4642]

At the 1:01:00 mark, the phrasing used by prof James seems inaccurate: ARCH models are used to deal with volatility clustering, not as a means to deal with smoothed returns. Great stuff otherwise!