Value Averaging: The Safe and Easy Strategy for Higher Investment Returns
Preface to the 2006 Edition.
Preface to the 1993 Edition.
1 Market Risk, Timing, and Formula Strategies.
RISK AND MARKET RETURNS.
Market Returns over Time.
Distribution of Market Returns.
Risk and Expected Return.
MARKET TIMING AND FORMULA STRATEGIES.
Timing the Market.
Automatic Timing with Formula Strategies.
2 Dollar Cost Averaging Revisited.
DOLLAR COST AVERAGING: AN EXAMPLE.
Over One-Year Periods.
Over Five-Year Periods.
LONG-TERM PROBLEMS WITH DOLLAR COST AVERAGING.
3 Value Averaging.
VALUE AVERAGING: AN INTRODUCTION.
LONG-TERM PERFORMANCE AND VALUE AVERAGING.
Linear, or Fixed-Dollar, Strategies.
Adjusting Strategies for Growth.
4 Investment Goals with Dollar Cost Averaging.
Using the Formula.
Annuities: Periodic Investments.
Dollar Cost Averaging and Annuities.
READJUSTING THE INVESTMENT PLAN.
The Readjustment Process.
Down-Shifting Investment Risk.
GROWTH-ADJUSTED DOLLAR COST AVERAGING.
Readjusting the DCA Plan.
Appendix to Chapter 4: Constructing a DCA Readjustment Spreadsheet.
5 Establishing the Value Path.
VALUE AVERAGING VALUE PATHS.
The Value Path Formula.
Flexible Variations on the Value Path Formula.
Readjusting the VA Plan.
A Cautionary Note.
An Alternate Method.
Appendix to Chapter 5: Constructing a VA Readjustment Spreadsheet.
6 Avoiding Taxes and Transaction Costs.
TAX CONSIDERATIONS WITH VALUE AVERAGING.
The Advantage of Deferred Gains.
Deferring Capital Gains Taxes: An Example.
A Compromise: No-Sell Value Averaging.
REDUCING TRANSACTION COSTS.
7 Playing Simulation Games.
WHAT AND HOW?
CONSTRUCTING THE SIMULATION.
Appendix to Chapter 7: Constructing a Simulation.
ENDNOTES TO APPENDIX TO CHAPTER 7.
8 Comparing the Strategies.
FIVE-YEAR SIMULATION RESULTS.
Using Growth Adjustments.
TWENTY-YEAR SIMULATION RESULTS.
9 Profiting from Overreaction.
TIRING OF A RANDOM WALK.
Mean Reversion and Overreaction.
A Brief Look at the Data.
WHY DOES THIS MATTER?
10 Details: Getting Started.
USING MUTUAL FUNDS.
The Fund versus Stock Choice.
Information on Specific Funds.
WORKING OUT THE DETAILS.
Using a Side Fund.
Operating Within a Retirement Account.
Establishing a Value Path.
Setting Up a VA Value Path: An Example.
Other Important Considerations.
Using Guidelines and Limits.
NOTES FOR FINANCIAL PLANNERS.
11 Examples: Strategies at Work.
THE GOAL AND INVESTMENT ENVIRONMENT.
Choosing an Investment.
Setting the Goal (Dealing with Inflation).
How Much Should He Invest?
INVESTMENT RETURN & TAXES.
IMPLEMENTING DOLLAR COST AVERAGING.
1981: Setting Up DCA.
1982–1983 Investment Results.
1983: Reassessment and Readjustment.
The 1985 Readjustment.
And So On and So On . . . .
Wrapping It Up: 1991 Results.
IMPLEMENTING VALUE AVERAGING.
Establishing the Value Path.
1983: Readjusting the VA Plan.
Future VA Readjustments.
12 A Final Word.
Includes spreadsheets on a companion Web site: www.wiley.com/go/valueaveraging
|Excel Files for VA Book
Excel Files to Accompany Value Averaging by Michael E. Edleson requires Microsoft Excel 97 or higher Excel files for some of the data and spreadsheets from the Appendices of Value Averagingare provided for you to download. For most Excel users, simply open the top file "Excel Files for VA Book" which has all four spreadsheets as tabs within this one master file. For readers with old software that can only open one worksheet at a time, we have also provided the four spreadsheets each in their own separate file. Instructions for use are contained in a text box within each spreadsheet. These supplemental spreadsheets contain:
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Chapter 1: 1990 - 2005 Data on Stock Index Returns, includes Annual, Monthly, and Weekly returns for the Nasdaq and S&P Indices, as used in the author's updates to the Preface and Chapter 1.
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Chapter 4: Readjustment Spreadsheet for DCA, as covered in the Appendix to Chapter 4.
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Chapter 5: Value Path Generator and Readjustment Spreadsheet for VA, as covered in the Appendix to Chapter 5.
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Chapter 7: Simulation of Investment Returns, an example of constructing a simulation, as covered in the Appendix to Chapter 7.
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