Balanced Asset Allocation: How to Profit in Any Economic Climate

ISBN-13: 9781118711941 / Angielski / Twarda / 2014 / 224 str.

Alex Shahidi

Opis

The conventional portfolio is prone to frequent and potentially devastating losses because it is NOT balanced to different economic outcomes. In contrast, a truly balanced portfolio can help investors reduce risk and more reliably achieve their objectives. This simple fact would surprise most investors, from beginners to professionals. Investment consultant Alex Shahidi puts his 15 years of experience advising the most sophisticated investors in the world and managing multi-billion dollar portfolios to work in this important resource for investors. You will better understand why nearly every portfolio is poorly balanced and how to view the crucial asset allocation decision from a deeper, more thoughtful perspective. The concepts presented are simple, intuitive and easy to implement for every investor. Author Alex Shahidi will walk you through the logic behind the balanced portfolio framework and provide step-by-step instructions on how to build a truly balanced portfolio. No book has ever been written that discusses asset allocation in this light.

• Provides insights from a top-ranked investment consultant using strategies from the industry's brightest minds
• Proposes a balanced asset allocation that can achieve stable returns through various economic climates
• Introduces sophisticated concepts in very simple terms

For those who want to better manage their investment portfolio and seek a more advanced approach to building a balanced portfolio, Balanced Asset Allocation: How to Profit in Any Economic Climate provides an in-depth treatment of the topic that can be put to use immediately.

Spis treści

Foreword Bill Lee ix

Acknowledgments xi

About the Author xiii

Introduction 1

CHAPTER 1

The Economic Machine: Why Being Balanced Is So Important Today 5

CHAPTER 2

Your Portfolio Is Not Well Balanced 19

CHAPTER 3

The Fundamental Drivers of Asset Class Returns 29

CHAPTER 4

Viewing Stocks through a Balanced Portfolio Lens 49

CHAPTER 5

The High Value of Low–Yielding Treasuries within the Balanced

Portfolio Framework 69

CHAPTER 6

Why TIPS Are Critical to Maintaining Balance (Despite Their

Low Yield) 89

CHAPTER 7

Owning Commodities in a Balanced Portfolio 101

CHAPTER 8

Even More Balance: Introduction to Other Asset Classes 115

CHAPTER 9

How to Build a Balanced Portfolio: Conceptual Framework 127

CHAPTER 10

How to Build a Balanced Portfolio: The Step–by–Step Process 143

CHAPTER 11

The Balanced Portfolio: Historical Returns 155

CHAPTER 12

Implementation Strategies: Putting Theory into Practice 181

CHAPTER 13

Conclusion 195

About the Website 197

Index 199

O autorze

ALEX SHAHIDI is a leading investment consultant managing multi–billion dollar portfolios. He focuses on advising large pension funds, foundations, endowments, and ultra–high–net–worth families, and is responsible for managing over $13 billion in assets. Alex is a Chartered Financial Analyst Charterholder, Certified Investment Management Analyst, and a Certified Financial Planner. Since 2008, he has consistently been recognized as one of the top financial advisors in the country by national publications such as Barron′s, Worth, and On Wall Street. His comments about asset allocation have been referenced in the Wall Street Journal, MarketWatch, Money News, and Advisor Perspectives.

Blurb

Praise for Balanced Asset Allocation

"Alex Shahidi′s book is a magistral piece that will be enjoyed by anyone with a serious interest in investing and asset allocation. The intellectual rigor with which Shahidi leads the reader from beginning to end is breathtaking, debunking many preconceived ideas from the institutional world while coming up with many novel and often counterintuitive ones. Through an analysis of various economic environments (past and future), Shahidi dissects the shifting correlations (and inverse correlations) between various asset classes (equities, fixed income, inflation protected securities, commodities ). This book is most timely in today′s deleveraging, and possibly low return, world."
Charles de Vaulx, Chief Investment Officer and Portfolio Manager, International Value Advisers (IVA), and recipient of Morningstar′s "International Stock Manager of the Year" award in 2001

"Building balance as described herein should be the foundation of all portfolios; this book is essential reading for any investor. Alex distills his comprehensive understanding of the economy, risk assets, and portfolio construction to its essence. The result is to make these valuable concepts accessible to a wide audience. Assimilating the wisdom in this book will increase the dependability of any portfolio."
Peter Joers, III, Co–Founder, Greenline Partners; former Client Advisor at Bridgewater Associates

"For many investors the most critical decision they make is in choosing their default portfolio. Yet for how important this decision is, remarkably little that is useful has been written. Alex does a phenomenal job proposing a simple yet effective solution. Balanced Asset Allocation is one of those rare books that is both easy to read and provides great insights."
Nick Nanda, Co–Founder, Kaleidoscope Capital; former Portfolio Manager on the Asset Allocation team at Grantham, Mayo, Van Otterloo & Co (GMO)

"There are many books on investing, but precious few that buck the consensus in a logical, well–argued manner. Read Alex Shahidi′s book with an open mind and you are sure to become a better investor, even if you disagree with his unconventional analysis."
Samuel Lee, Strategist, Morningstar