Ron Bewley

Ron Bewley

Switzer Expert

Read Ron's Profile

Ron Bewley, PhD, FASSA
Executive Director
Woodhall Investment Research

Ron was Professor of Econometrics at UNSW when he was invited to join the Commonwealth Bank to found a Quantitative Research & Investment Strategy team. After researching across most asset classes in global markets, risk and strategy, he was appointed as the foundation Chief Investment Officer in CBA’s Private Client Services. He retired from the bank in 2009 and formed Woodhall Investment Research the following year.

In his first book, Allocation Models, Ron presents a unified econometric approach for analysing relationships that allocate aggregates across their component parts – as in wealth being allocated across asset classes. He published over 50 academic papers on a variety of theoretical and applied econometric topics. He held a number of visiting academic positions in the US, UK and Europe. Ron was elected Fellow of the Academy of Social Sciences in 1995. He was also consult to a number of major companies and government departments.

At Woodhall, Ron has combined his academic and markets experiences to produce cutting-edge solutions for implementing investment strategies in equities and other asset classes.

www.woodhall.com.au

Latest Commentary

You haven’t missed the resource stock boat just yet

by Ron Bewley

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Last Tuesday, my long-held view that resources and related stocks had been oversold this year on a misguided end-of-China-boom story got some very strong backing. I publish a number of charts on my website each week, one of which shows my measure of under or overpricing – I call this 'exuberance'.

For a number of months, that measure has shown resource and related stocks to be very cheap while most of the defensive and high-yield stocks have been expensive.

In particular, my measure of exuberance for Telcos was 12% overpriced when I was interviewed last week on Switzer TV. Since I have observed that sectors don't typically stay overpriced by more than 6% for long before they correct, Telcos were defying gravity and I said that to Peter. Not only have I developed this rule over seven years and 11 sectors of the ASX200 – the same rule seems to work for the S&P500 and its sectors, which I also monitor.

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