Asset Allocation, 4th Ed / Edition 4

Asset Allocation, 4th Ed / Edition 4

by Roger Gibson
     
 

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

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Overview

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

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Product Details

ISBN-13:
9780071478090
Publisher:
McGraw-Hill Professional Publishing
Publication date:
12/20/2007
Pages:
336
Product dimensions:
6.40(w) x 9.30(h) x 1.09(d)

Table of Contents

Acknowledgments
Foreword
Introduction1
Ch. 1The Importance of Asset Allocation4
Ch. 2Historical Review of Capital Market Investment Performance18
Ch. 3Comparative Relationships among Capital Market Investment Alternatives52
Ch. 4Market Timing71
Ch. 5Time Horizon80
Ch. 6A Model for Determining Broad Portfolio Balance94
Ch. 7Diversification: The Third Dimension115
Appendix: A More Detailed Discussion of Diversification Concepts131
Ch. 8Traditional Portfolios versus More Broadly Diversified Approaches142
Ch. 9Portfolio Optimization169
Ch. 10Know Your Client188
Ch. 11Managing Client Expectations199
Ch. 12Money Management213
Ch. 13Resolving Problems Encountered During Implementation242
Conclusion250
Index255

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