Advanced Valuation in Financial Markets

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20 hours of online content for investors

About this event

We've teamed up with Russell Napier, renowned financial expert to provide his unique and leading financial markets course as an online programme available to anyone, anytime, wherever you live. Engaging and informative, and yet both practical and useful, this course will equip participants with a deep foundational knowledge, lead to a keen understanding of the workings of financial markets, and help guide their decisions and activities.

Written and presented by leading academics, senior economists and investment practitioners, the course contains over 20 hours of video and covers key areas including equity valuations, economics, behavioural finance and liquidity.

On completion you will be able to:

Critically evaluate different methods of valuing stock markets and identify faults in the valuation methods.

Explain the idea of mean reversion in financial markets and identify valuation techniques that follow mean reversion using data from the last 100 years to demonstrate this.

Understand the impact inflationary or deflationary forces have on the returns to different classes of financial assets.

Understand the impact liquidity and the supply of money has on stock market returns over time.

Understand the impact of psychological biases on returns in the stock market and the role that they can play in major stock market events.

Critically evaluate the lessons from the history of the financial markets over the past 200 years or more.

Module 1 Value and Expected Returns

Derry Pickford starts us off with a look through the successes and failures over the last 200 years in equity valuation. Tackling key questions such as "what does value mean?", Derry ultimately invites us to consider what makes a good indicator of value, and crucially what do the data tell us about the state of stock markets today.

Module 2 The Monetary Theory of Asset Prices

Any study of financial markets must include a look at monetary policy and liquidity. In this session, John Greenwood presents the monetary theory of asset prices, pointing out that what happens to securities such as equities, bonds, real estate and commodities is very much part of the business cycle, and determined by the money creation activities of governments and commercial banks.

Module 3 Behavioural Finance

What good is financial theory if we abstract out the psychological element? Herman Brodie’s approach to behavioural finance is an important part of the jigsaw in understanding what drives valuations. Investment managers and the general public can all be affected by the biases that deflect us from determining true value, and this module is centred on how this theory can provide practical information with which to value financial markets.

Module 4 Investing in Differing Inflationary Climates

Inflation and deflation are key determinants in the value of securities, and this module is an exploration of investing in different inflationary situations and climates. With a timespan covering the entirety of the 20th century and into the 21st, we are led through periods of extreme inflation and extreme deflation – and even cases of wartime hyperinflation. What we learn is that investor returns can vary hugely depending on the inflationary background.

Module 5 The Mean Reversion of Equity Valuations – Past, Present and Future

Course Director Prof. Russell Napier brings everything together in our final module, with half of the time spent exploring how the key forces driving the mean reversion of equity valuations interact. The rest of the module is forward-looking, anticipating where valuations may go and the drivers of financial market valuations in coming years.

The course costs £1,000 and is available through the Heriot Watt Edinburgh Business School website

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