Saturday, May 26, 2012

Studying for CFA level II

I've been studying for CFA level II and so far I've completed 1920 practice exam questions through the various Schweser notes, online Qbank, CFA mock exam.
I'm fortunate the market has been a lot less volatile in the past week, as my study sessions are woefully distracted when markets start spewing Greece rhetoric.
It's been a struggle getting marks over 75%, in most cases averaging about 60% and I'm still having trouble remembering some topics like temperal method of accounting, swap calculations in mid-life (and forex swaps, are crazy) and foreign currency risk premiums.
Ethics although mostly a rehash of level I have a way of thoroughly confusing you on the subtle lines of defintions.  Well I guess that part of the interpretation is somehwhat practical given the un-ethical nature of financial markets recently.

I'll think I'll post the study strategy that I applied, assuming I pass.

As for the week's finance, eurobonds is a distinct possibility, gold/silver have performed well, but AUD has still remained a laggard - although the level of 98c which held up last year in the Japan led financial market sell-off was held swiftly before seeing it regain 1.00.  However, parity may be harder to hold given the Aussie rates are in a lowering phase.

I think the cyclical will be a big outperformer in the next quarter: BHP, WPL, RIO, FMG are all in a good value range - we may see some tax loss selling next week- but a positive performance in the first week of June may set the tone for the rest of the year for Aussie equities.

I've offloaded ATVI, AMZN, and rotated into AG (silver), GDX, with the expectations that some sort of stimulus may be announced first week June; a combined lowering of euro rates and Fed stimulus.