Rational Expectations is a clean sheet of paper in the wonky world of quantitatively based asset allocation aimed at small investors. Continuing the theme of the Investing for Adults series, this full-length finance title is not for beginners, but rather assumes a fair degree of quantitative ability and finance knowledge. If you think you can time the market or pick stocks and mutual fund managers, or even if you think that you can formulate an optimally efficient mean-variance asset allocation with a black box, then learn some basic finance and come back in a few years. On the other hand, if you know your way around risk premiums and standard deviations and know who Irving Fisher and Benjamin Graham were, and if you want to sharpen your asset class skills, you�ve come to the right place.
|Publisher:||Efficient Frontier Publications, LLC|
|Sold by:||Barnes & Noble|
|File size:||2 MB|
About the Author
William Bernstein, Ph.D., M.D., is a retired neurologist in Oregon. Known for his website on asset allocation and portfolio theory Efficient Frontier, Dr. Bernstein is also a co-principal in the money management firm Efficient Frontier Advisors, has authored several best-selling books on finance and history, and is often quoted in the national financial media.
Most Helpful Customer Reviews
Rational Expectations based on 0 ratings. 1 reviews.
This book updates Bernstein's "Intelligent Asset Allocator" (2000), and is equally impressive. Like its precursor, there is more math here than in "Four Pillars of Investing" (2002, new edition 2010). I would recommend "Four Pillars" for someone who does not want the numbers -- but "Rational Expectations" is better, for those who are up to it. I have not read the earlier short books in his "Investing for Adults" series, but my impression is that "Rational Expectations" incorporates most of that material, along with quite a bit more. Bernstein discusses asset classes, allocations between them (and how the allocations should change over one's lifetime, and how to rebalance them), how our psychology can get in the way of good results, the nature of risk in today's markets, the effects on the markets of high-frequency trading, zero-percent interest rates, and much more. An excellent book: highly recommended.