Asset Allocation 4th Ed

The definitive guidebook for successful long-term investing The third edition of Roger C. Gibson's Asset Allocation: Balancing Financial Risk was released in 2000 on the heels of the biggest bull market in a century and amidst talk of a new economy. The bear market that followed was the worst since 1973-1974 and resulted in the destruction of roughly half of the stock market's value. Through it all, Roger Gibson's advice to investors remained the same. Gibson once again offers techniques to design all-weather portfolios that improve long-term performance, while mitigating overall risks through widely varying market environments. Grounded in the principles of modern portfolio theory, this fourth edition of his investing classic explains how and why asset allocation works. Gibson demonstrates how adding new asset classes to a portfolio improves its risk-adjusted returns and how strategic asset allocation uses, rather than fights, the forces of capital markets to achieve investment success. Gibson also addresses the practical side of investing, advocating an approach based on a disciplined execution of the fundamentals--the most important things that investment professionals and lay investors need to focus on to achieve their financial goals. With more than two decades of experience managing clients' portfolios and expectations, he underscores the importance of identifying and working through the emotional and psychological traps that can impede investment success. In this new edition, Gibson offers his proven guidance on multiple-asset-class investing with updated exhibits and research. New topics include: A review of the 2000-2002 stock bear market in the context of bull and bear markets over the last 100 years An expanded discussion of the dangers of market timing Non-traditional asset classes such as real estate securities, commodity-linked securities, and TIPS in a diversified portfolio The challenges of “frame-of-reference” risk--the most significant danger confronting the multiple-asset-class investor The role of Monte Carlo simulation in retirement planning

The definitive guidebook for successful long-term investing The third edition of Roger C. Gibson's Asset Allocation: Balancing Financial Risk was released in 2000 on the heels of the biggest bull market in a century and amidst talk of a new economy. The bear market that followed was the worst since 1973-1974 and resulted in the destruction of roughly half of the stock market's value. Through it all, Roger Gibson's advice to investors remained the same. Gibson once again offers techniques to design all-weather portfolios that improve long-term performance, while mitigating overall risks through widely varying market environments. Grounded in the principles of modern portfolio theory, this fourth edition of his investing classic explains how and why asset allocation works. Gibson demonstrates how adding new asset classes to a portfolio improves its risk-adjusted returns and how strategic asset allocation uses, rather than fights, the forces of capital markets to achieve investment success. Gibson also addresses the practical side of investing, advocating an approach based on a disciplined execution of the fundamentals--the most important things that investment professionals and lay investors need to focus on to achieve their financial goals. With more than two decades of experience managing clients' portfolios and expectations, he underscores the importance of identifying and working through the emotional and psychological traps that can impede investment success. In this new edition, Gibson offers his proven guidance on multiple-asset-class investing with updated exhibits and research. New topics include: A review of the 2000-2002 stock bear market in the context of bull and bear markets over the last 100 years An expanded discussion of the dangers of market timing Non-traditional asset classes such as real estate securities, commodity-linked securities, and TIPS in a diversified portfolio The challenges of “frame-of-reference” risk--the most significant danger confronting the multiple-asset-class investor The role of Monte Carlo simulation in retirement planning

Financial experts agree: Asset allocation is the key strategies for maintaining a consistent yet superior rate of investment return. Now, Roger Gibson's Asset Allocation - the bestselling reference book on this popular subject for a decade has been updated to keep pace with the latest developments and findings. This Third Edition provides step-by-step strategies for implementing asset allocation in a high return/low risk portfolio, educating financial planning clients on the solid logic behind asset allocation, and more.

WHEN IT COMES TO INVESTING FOR YOUR FUTURE, THERE'S ONLY ONE SURE BET—ASSET ALLOCATION THE EASY WAY TO GET STARTED Everything You Need to Know About How To: Implement a smart asset allocation strategy Diversify your investments with stocks, bonds, real estate, and other classes Change your allocation and lock in gains Trying to outwit the market is a bad gamble. If you're serious about investing for the long run, you have to take a no-nonsense, businesslike approach to your portfolio. In addition to covering all the basics, this new edition of All About Asset Allocation includes timely advice on: Learning which investments work well together and why Selecting the right mutual funds and ETFs Creating an asset allocation that’s right for your needs Knowing how and when to change an allocation Understanding target-date mutual funds "All About Asset Allocation offers advice that is both prudent and practical--keep it simple, diversify, and, above all, keep your expenses low--from an author who both knows how vital asset allocation is to investment success and, most important, works with real people." -- John C. Bogle, founder and former CEO, The Vanguard Group "With All About Asset Allocation at your side, you'll be executing a sound investment plan, using the best materials and wearing the best safety rope that money can buy." -- William Bernstein, founder, Effi cientFrontier.com, and author, The Intelligent Asset Allocator

Asset Allocation is the premier resource for understanding and applying historically-tested asset allocation principles to design individually tailored portfolio strategies focused on long-term results. The bear market of the early 2000's confirmed how asset allocation can increase returns and reduce risk-and it's all covered in detail in the new fourth edition. Grounded in the principles of modern portfolio theory, the author explains why and how asset allocation works. He also addresses the practical side of investing with advice on resolving implementation problems and working with emotional and psychological traps that can prevent investment success.

The Definitive Guide to Strategic Asset Allocation Uniting theory and practice--the art and science of asset allocation Investors long to beat the market, and money managers accept that as their mandate. The sad reality is that most money managers underperform the market, and individual investors do even worse. Investors also face emotional challenges. The irrational exuberance of the 1990s, for instance, can as easily derail a sensible investment strategy as the market panic accompanying the Global Financial Crisis. Since Roger Gibson wrote the first edition of this book over 25 years ago, his multiple-asset class investment approach has given investors a disciplined strategy for mitigating risks and realizing their financial goals through widely varying market environments. Grounded in the principles of modern portfolio theory, this fifth edition of his investing classic explains how and why asset allocation works. Gibson demonstrates how adding new asset classes to a portfolio improves its risk-adjusted returns and how strategic asset allocation uses, rather than fights, the forces of the capital markets to achieve financial success. New topics in this edition include: The success of multiple-asset-class investing during the stock market's "lost decade" Methods for forecasting long-term asset class returns and the limitations of prediction The dangers of market timing and the challenges involved in tactical asset allocation strategies--with insights from the field of behavioral finance Observations from the Global SIDONI Financial Crisis of 2008 and what it means for the multiple-asset-class investor With more than three decades of experience managing clients' portfolios and expectations, Gibson underscores the importance of identifying and working through the emotional and psychological traps that impede investment success. Join the quarter-century trend of Asset Allocation providing investors with a sound approach to financial well-being.

An authoritative resource for the wealth management industry that bridges the gap between modern perspectives on asset allocation and practical implementation An advanced yet practical dive into the world of asset allocation, Modern Asset Allocation for Wealth Management provides the knowledge financial advisors and their robo-advisor counterparts need to reclaim ownership of the asset allocation component of their fiduciary responsibility. Wealth management practitioners are commonly taught the traditional mean-variance approach in CFA and similar curricula, a method with increasingly limited applicability given the evolution of investment products and our understanding of real-world client preferences. Additionally, financial advisors and researchers typically receive little to no training on how to implement a robust asset allocation framework, a conceptually simple yet practically very challenging task. This timely book offers professional wealth managers and researchers an up-to-date and implementable toolset for managing client portfolios. The information presented in this book far exceeds the basic models and heuristics most commonly used today, presenting advances in asset allocation that have been isolated to academic and institutional portfolio management settings until now, while simultaneously providing a clear framework that advisors can immediately deploy. This rigorous manuscript covers all aspects of creating client portfolios: setting client risk preferences, deciding which assets to include in the portfolio mix, forecasting future asset performance, and running an optimization to set a final allocation. An important resource for all wealth management fiduciaries, this book enables readers to: Implement a rigorous yet streamlined asset allocation framework that they can stand behind with conviction Deploy both neo-classical and behavioral elements of client preferences to more accurately establish a client risk profile Incorporate client financial goals into the asset allocation process systematically and precisely with a simple balance sheet model Create a systematic framework for justifying which assets should be included in client portfolios Build capital market assumptions from historical data via a statistically sound and intuitive process Run optimization methods that respect complex client preferences and real-world asset characteristics Modern Asset Allocation for Wealth Management is ideal for practicing financial advisors and researchers in both traditional and robo-advisor settings, as well as advanced undergraduate and graduate courses on asset allocation.

Build an agile, responsive portfolio with a new approach to global asset allocation Adaptive Asset Allocation is a no-nonsense how-to guide for dynamic portfolio management. Written by the team behind Gestaltu.com, this book walks you through a uniquely objective and unbiased investment philosophy and provides clear guidelines for execution. From foundational concepts and timing to forecasting and portfolio optimization, this book shares insightful perspective on portfolio adaptation that can improve any investment strategy. Accessible explanations of both classical and contemporary research support the methodologies presented, bolstered by the authors' own capstone case study showing the direct impact of this approach on the individual investor. Financial advisors are competing in an increasingly commoditized environment, with the added burden of two substantial bear markets in the last 15 years. This book presents a framework that addresses the major challenges both advisors and investors face, emphasizing the importance of an agile, globally-diversified portfolio. Drill down to the most important concepts in wealth management Optimize portfolio performance with careful timing of savings and withdrawals Forecast returns 80% more accurately than assuming long-term averages Adopt an investment framework for stability, growth, and maximum income An optimized portfolio must be structured in a way that allows quick response to changes in asset class risks and relationships, and the flexibility to continually adapt to market changes. To execute such an ambitious strategy, it is essential to have a strong grasp of foundational wealth management concepts, a reliable system of forecasting, and a clear understanding of the merits of individual investment methods. Adaptive Asset Allocation provides critical background information alongside a streamlined framework for improving portfolio performance.