Balanced Asset Allocation: How to Profit in Any Economic Climate
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.
Foreword Bill Lee ix
About the Author xiii
The Economic Machine: Why Being Balanced Is So Important Today 5
Your Portfolio Is Not Well Balanced 19
The Fundamental Drivers of Asset Class Returns 29
Viewing Stocks through a Balanced Portfolio Lens 49
The High Value of Low-Yielding Treasuries within the Balanced
Portfolio Framework 69
Why TIPS Are Critical to Maintaining Balance (Despite Their
Low Yield) 89
Owning Commodities in a Balanced Portfolio 101
Even More Balance: Introduction to Other Asset Classes 115
How to Build a Balanced Portfolio: Conceptual Framework 127
How to Build a Balanced Portfolio: The Step-by-Step Process 143
The Balanced Portfolio: Historical Returns 155
Implementation Strategies: Putting Theory into Practice 181
About the Website 197
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.