Asset Allocation: Balancing Financial Risk
The Definitive Guide to Strategic Asset Allocation
Uniting theory and practice–the art and science of asset allocation.
Investors long to beat the market, and money managers accept that as their mandate. The sad reality is that most money managers underperform the market, and individual investors do even worse. Investors also face emotional challenges. The irrational exuberance of the 1990s, for instance, can as easily derail a sensible investment strategy as the market panic accompanying the Global Financial Crisis.
Grounded in the principles of modern portfolio theory, this fifth 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 the capital markets to achieve financial success.
With more than three decades of experience managing clients’ portfolios and expectations, Gibson underscores the importance of identifying and working through the emotional and psychological traps that impede investment success.
