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Balanced Asset Allocation: How to Profit in Any Economic Climate

Balanced Asset Allocation: How to Profit in Any Economic Climate

Alex Shahidi, Bill Lee (Foreword by)

ISBN: 978-1-118-71194-1

Dec 2014

224 pages

In Stock

CAD $78.00

Description

Praise for Balanced Asset Allocation

"Alex Shahidi's book is a magistral piece that will be enjoyed by anyone with a serious interest in investing and asset allocation. The intellectual rigor with which Shahidi leads the reader from beginning to end is breathtaking, debunking many preconceived ideas from the institutional world while coming up with many novel and often counterintuitive ones. Through an analysis of various economic environments (past and future), Shahidi dissects the shifting correlations (and inverse correlations) between various asset classes (equities, fixed income, inflation protected securities, commodities…). This book is most timely in today's deleveraging, and possibly low return, world."
—Charles de Vaulx, Chief Investment Officer and Portfolio Manager, International Value Advisers (IVA), and recipient of Morningstar's "International Stock Manager of the Year" award in 2001

"Building balance as described herein should be the foundation of all portfolios; this book is essential reading for any investor. Alex distills his comprehensive understanding of the economy, risk assets, and portfolio construction to its essence. The result is to make these valuable concepts accessible to a wide audience. Assimilating the wisdom in this book will increase the dependability of any portfolio."
—Peter Joers, III, Co-Founder, Greenline Partners; former Client Advisor at Bridgewater Associates

"For many investors the most critical decision they make is in choosing their default portfolio. Yet for how important this decision is, remarkably little that is useful has been written. Alex does a phenomenal job proposing a simple yet effective solution. Balanced Asset Allocation is one of those rare books that is both easy to read and provides great insights."
—Nick Nanda, Co-Founder, Kaleidoscope Capital; former Portfolio Manager on the Asset Allocation team at Grantham, Mayo, Van Otterloo & Co (GMO)

"There are many books on investing, but precious few that buck the consensus in a logical, well-argued manner. Read Alex Shahidi's book with an open mind and you are sure to become a better investor, even if you disagree with his unconventional analysis."
—Samuel Lee, Strategist, Morningstar

Foreword Bill Lee ix

Acknowledgments xi

About the Author xiii

Introduction 1

CHAPTER 1

The Economic Machine: Why Being Balanced Is So Important Today 5

CHAPTER 2

Your Portfolio Is Not Well Balanced 19

CHAPTER 3

The Fundamental Drivers of Asset Class Returns 29

CHAPTER 4

Viewing Stocks through a Balanced Portfolio Lens 49

CHAPTER 5

The High Value of Low-Yielding Treasuries within the Balanced

Portfolio Framework 69

CHAPTER 6

Why TIPS Are Critical to Maintaining Balance (Despite Their

Low Yield) 89

CHAPTER 7

Owning Commodities in a Balanced Portfolio 101

CHAPTER 8

Even More Balance: Introduction to Other Asset Classes 115

CHAPTER 9

How to Build a Balanced Portfolio: Conceptual Framework 127

CHAPTER 10

How to Build a Balanced Portfolio: The Step-by-Step Process 143

CHAPTER 11

The Balanced Portfolio: Historical Returns 155

CHAPTER 12

Implementation Strategies: Putting Theory into Practice 181

CHAPTER 13

Conclusion 195

About the Website 197

Index 199